GREEN BAY, WI (WTAQ) – As AAA predicts that more than 81 million Americans are expected to hit the roads this holiday season, gas prices are ticking up once again. But that rise in prices isn’t exactly connected to the higher volume on the highway.
“[It’s] not really so much an increase in demand, but more increased optimism as it relates to a COVID-19 vaccine,” said GasBuddy Senior Petroleum Analyst Patrick DeHaan. “Prices at most stations are going up in response to higher oil prices due to optimism over a vaccine. Oil has seen some pretty healthy gains.”
Despite a projected 25% decline in holiday road travel compared to last year, oil prices hit their highest level since March last week. While the trends continue to point upwards, DeHaan says there are some factors that could lead to another drop.
“Where prices go is really contingent on the COVID-19 situation…We’ve seen more developments of COVID-19 in regards to the United Kingdom, where apparently a different strain has emerged as more contagious. And oil prices [are] now plummeting 4-percent today,” DeHaan told WTAQ News. “If we see backpedaling and more concerns about shut downs, prices should back off. Whereas normally, as we saw last week, when the news is optimistic that usually pushes the oil and thus gas prices higher.”
AAA estimates many drivers will take shorter trips, replacing longer holiday vacations.
In Green Bay, GasBuddy says gas prices have risen 15.7 cents per gallon in the past week, averaging $2.06/g Monday. This December, gas prices in Green Bay are 23.3 cents per gallon higher than a month ago and stand 29.4 cents per gallon lower than a year ago.
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