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Gas Prices Keep Dropping as Christmas Nears

Gasoline prices in the U.S. are caught between an uptick in holiday travel and the fear of the impact of new variants of COVID-19, resulting in downward pressure on prices.

Los Angeles gas prices on 11-21-21 — The average price for gas in the U.S. is $3.30 per gallon. California averages $4.66 a gallon.

GasBuddy.com, which tracks the price of gasoline nationally, reported the average price of a gallon of gasoline is now $3.30. It dropped by more than a half-cent earlier this week and is down 2.6 cents per gallon from last week.

The prices are down 11.5 cents per gallon from last month when prices peaked across the country ahead of the Thanksgiving holiday prior to the appearance of the Omicron variant of COVID-19, which is creating new turbulence throughout the economy.

Factors in the decline

AAA noted in its weekly report on gasoline prices the demand for fuel increased as consumer confidence jumped heading into the holiday season. However, fears of the COVID-19 omicron variant’s economic impact may threaten future global oil consumption, AAA said.

President Joe Biden noted gas prices have returned to pre-pandemic levels this week.

“A recovering economy coupled with strong employment is leading to increased demand for gasoline,” said Andrew Gross, AAA spokesperson. “This demand increase should drive pump prices higher, but it’s been blunted by the wavering price of crude oil.”

As a result, pump prices fell again last week as crude oil prices wobbled — neither rising steadily nor falling rapidly. The national average for a gallon of gas dipped three cents to $3.30, according to AAA.

According to recent data from the Energy Information Administration, or EIA, total domestic gasoline stocks decreased by 700,000 barrels to 218.6 million barrels last week, AAA said.

In addition, fluctuations in the price of crude oil put downward pressure on prices. Last week, crude prices crept above $70 per barrel and if oil prices continue to climb, pump prices will likely follow suit.

Oil prices waver on news

Overall, crude prices declined last week due to growing market concerns that the omicron variant of COVID-19 will lead to a decrease in demand as governments around the globe increase measures to curb transmission rates. The EIA reported gasoline stocks are 14% lower than mid-December 2020. For this week, crude prices could drop further if omicron concerns carry on.

Meanwhile, President Joe Biden observed this week in 21 states the price of gasoline is the same now as it was at point in 2019 before gasoline prices sunk on heels of a global recession that followed the outbreak of the COVID-19 pandemic.

Among the states with the largest declines in prices were Indiana and Michigan where prices dropped by six cents per gallon. In Ohio, Arizona, Illinois it dropped by a nickel per gallon and Florida and Colorado it was down four cents per gallon, according to AAA.

AAA said the most expensive gasoline was in California, which is generally the case, where it averaged $4.66 per gallon. Prices in Oregon and Nevada averaged $3.86 per gallon.

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What Does Santa Drive?

Sure, you might think that dear old Santa Claus is just some jolly gift giver. But look closer, and it’s hard not to be impressed.

This is a guy who runs a major distribution operation at the North Pole, a privately held enterprise that procures goods year ‘round, listens to customers and fulfills their requests in one short night. And you thought Amazon Prime was quick? Yeah, right.

And just try parallel parking eight reindeer and a sleigh without any automated driver assist systems. Good luck.

But it begs the question, what does this much beloved, highly placed, international executive drive? No one really knows, but here are some possibilities.

Jeep Grand Wagoneer - by castle — The new Grand Wagoneer is powered by a 6.4-liter V-8 putting out 471 horsepower, making it a great daily driver

Jeep Grand Wagoneer: Given Santa’s advancing years, his comfort is a priority. But there’s work to be done, so ol’ Saint Nick needs a lot of utility and the ability to go anywhere at any time no matter what the weather. Few vehicles do it as well as the 2022 Jeep Grand Wagoneer, especially on unimproved roads.

Santa values the Grand Wagoneer’s Quadra-Drive II with active low range, rear electronic limited slip differential, terrain management system, its 48:1 crawl ratio, and ability to ford up to 24 inches of water yet tow 10,000 pounds. Yet its cabin possesses artisan-levels of craftsmanship, something unexpected yet welcome.

But it’s more than capability or its opulent interior. This is one high-tech sled, with a full 45 inches of video screens on the instrument panel. And having such a large vehicle at the North Pole is comforting when driving in bleak weather and Rudolph is playing reindeer games.

Ford F-150 hybrid powering Texas home 2020 — The Ford F-150 Hybrid is good source of power should it go out at the North Pole.

Ford F-150 PowerBoost Hybrid: Eight reindeer eating lots of Reindeer Chow leads to a lot of — ahem — mess to clean up. A pickup makes for the perfect polar workhorse, especially the 2021 Ford F-150 Hybrid.

Its twin-turbocharged and intercooled 3.5-liter overhead-cam V-6 mated to an electric motor that generates 430 horsepower and 570 pound-feet of torque and returns an EPA-rated of 24 mpg. And it can tow 12,700 pounds, enough to haul a trailer with all eight reindeer and their chow. It also boasts an integrated generator, with 7.2 kilowatts of power, enough to help power key appliances when the power goes out.

And when Santa needs his truck to be his office, there’s a 400-watt outlet for running office equipment, and a center armrest that converts to a flat work surface, with a storage bin beneath it large to hang file folders. And the front seats fold flat to create a bed that’s perfect for the quick nap away from Mrs. Claus. Ho, ho, ho.

The new Chrysler Pacifica Hybrid can travel up to 30 miles in electric-only mode, and carry a whole pack of elves.

Chrysler Pacifica Plug-In Hybrid: When you need to move a mess of elves, few vehicles can handle it with the aplomb of the 2022 Chrysler. Sure, Santa needs a minivan to schlep his staff, and the Pacifica proves the ideal solution. There’s more legroom than many full-size SUVs, and abundant cargo space.

To keep them all occupied, there’s Amazon Alexa, wireless Apple CarPlay and Android Auto, and for 2022, Amazon Fire TV streaming for rear-seat passengers. Powering the Pacifica Plug-In Hybrid is the corporate 3.6-liter double-overhead cam V-6, albeit modified for hybrid duties, working in concert with two electric motors to deliver 260 horsepower to the front wheels.

It run 33 miles solely on electric power, enough to quickly pop across town. And the EPA says that you can save $800 annually in fuel costs compared to the standard Pacifica minivan.

Mrs. Claus loves the Genesis GV80’s understated opulence

Genesis GV80: The lavish GV80 is an all-new model for Genesis, one that guarantees Santa’s other half will be wearing the latest in bold automotive fashion, and enjoy the latest in seamless technology including all-wheel drive.

Mrs. Claus loves the extensive suite of driver-assistance safety features and helpful technology such as the head-up display and a huge 14.5-inch touchscreen. The quilted leather upholstery, and rear seats that adjust with heated and cooled cushions seem positively lavish.

And when it comes to indulgence, the same can be said of its performance, thanks to its 375-hp twin-turbocharged 3.5-liter V-6. It’s a sweet ride for the missus.

Mercedes-Maybach S 680: A night on the town calls for a righteous ride, one that’s appropriate of Santa’s station. Is there another executive shuttle to match the technology, ability and finely crafted interior of the Mercedes-Benz S-Class? The Maybach trim level turns up the luxury to 11, while retaining the sort of convenience features essential to older drivers.

When all the gifts have been delivered, and every stocking stuffed, Santa enjoys a good rip behind the wheel of the Mazda MX-5 Miata.

One such feature, Night View Assist Plus, ensures the driver doesn’t hit any wildlife. ANd its quilted leather and hushed ambience, makes every ride a special occasion. And let’s not forget its 6.0-liter twin-turbo V-12; it propels this massive Merc to 60 in just 4.4 seconds. And considering how much Santa has given others, this bit of indulgence is worth it.

Mazda MX-5 Miata: The stockings are stuffed, the presents placed under the tree, and now it’s Miller time. Even Santa needs to let his hair down to enjoy a few ho, ho, hos in warm weather.

You can almost see him zipping around Palm Springs in the Mazda MX-5 Miata. It’s a modern-day classic with great looks, light weight and crisp handling.

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Tank Truck Driver Shortage Could Hit Hard During Independence Day Break.

After more than a year of pandemic restrictions, nearly 50 million Americans are expected to travel during the Independence Day break — and while motorists are used to paying a premium for fuel on holidays, there’s also the risk that some pumps could be running dry.

Houston traffic — Travel over the holiday is expected to run 40% higher than 2020, according to AAA.

This time, it’s not hackers to blame, no shutdowns like the one that hit the Colonial Pipeline in May. The problem is getting fuel from refineries to pumps with a serious shortage of drivers for the nation’s tank truck fleet.

In recent days, there have been reports of pumps running dry all along the Pacific coast, as well as Colorado, Iowa, Indiana and Ohio, according to tracking sites such as the Oil Price Information Service. And the situation could get even more severe as motorists take to the road for the holiday.

Travel rebounds

The AAA estimates 47.7 million Americans will travel for the holiday, a 40% increase from the pandemic-plagued 4^th of July break in 2020, though still slightly down from 2019 numbers. About 43.6 million will take to the highways, the travel service forecasts.

As is the norm, fuel prices have gone up in anticipation of higher demand. GasBuddy.com showed prices for regular fuel running a national average of just over $3.13 a gallon as of Friday morning, July 2. That’s about a nine cent jump in the past 30 days.

The increase is actually modest heading into a major holiday, based on historical records, however. And it actually lags the roughly 20-cent run-up between the beginning of April and June 1. A sharp increase in gasoline stocks during June helped rein in costs, according to AAA.

As much as a quarter of the nation’s tanker trucks have been idled by a shortage of drivers.

“Despite the latest increase in demand, many motorists are not seeing significant pump price jumps due to increasing stock levels, which have significantly built over the last four weeks,” Jeanette McGee, AAA spokesperson said late last month.

Plenty of fuel — at the refinery

There is plenty of fuel at refineries and even regional storage depots across the country, particularly with the Colonial Pipeline and other national distribution networks up and running. The problem is getting fuel to local pumps.

This has been a matter of growing concern for several years, escalated by the pandemic. The National Tank Truck Carriers, a trade group, reported this spring that 20 to 25% of gasoline tankers were sitting idle, with no one available to put behind the wheel. And, if anything, trucking companies are finding it difficult to replace drivers who continue to quit or retire in large numbers. If anything, the number of drivers who quit the business accelerated in 2020 as demand for fuel plunged and tanker companies cut work schedules.

Operating a tanker truck can be a dangerous job and requires additional training and licensing. So, resolving the shortage of drivers could take time to address.

For now, that means service stations placing an order for more fuel might have to wait a couple days, rather than expect same-day delivery, said Tom Kloza, global head of energy analysis for the Oil Price Information Service.

Getting gas — There are steps you can take to avoid running out of fuel, even if shortages worsen over the holiday.

Spot shortages – and what to do if you find one

AAA’s McGree told TheDetroitBureau.com spot shortages were already popping up around the country by April, especially in popular destinations like Las Vegas and Orlando.

Where else shortages might pop up is hard to predict, according to Patrick De Haan, head of petroleum analysis at GasBuddy. So far, they’ve been “random in nature,” and motorists could find one station completely dry while others nearby have plenty of fuel.

“What we don’t want to happen this holiday is for someone to see a bagged pump and start to panic,” McGee told the Bloomberg news service.

Experts offer several bits of advice:

Make sure to have plenty of fuel in your tank before heading out on the road;
Don’t let your car run dry before seeking a place to refill — especially if you’re in parts of the country where service stations are few and far between;
If you do pull off and find a station has run dry, look around. Odds are there’s another place nearby with plenty of fuel;
Use one of the many apps, like GasBuddy, to track fuel availability on the road. They’ll also help you find the best price.

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