Despite Gas Prices, Americans Hit The Road

With Prices At The Pump Topping $4 A Gallon, More Than 38 Million Americans Are Traveling This Memorial Day Weekend

(CBS/AP) 

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At the start of the biggest holiday weekend since gasoline price-hikes moved into the fast lane, gas is up more than 90 cents since February. It jumped another nickel overnight, to a nationwide average $3.88 a gallon.

The cost of fuel is keeping some Americans closer to home, and a AAA survey finds the number of Memorial Day travelers is down for the first time since 2002.

Still, nearly 38 million Americans are heading out of town, and paying the price, reports CBS News Business Correspondent Anthony Mason.

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This Memorial Day weekend is one of the biggest on the NASCAR calendar, Mason reports.

It's the running of the Coca-Cola 600 in Concord, N.C. Since last week, fans have been pulling in from all over the country. Steve Biddle drove his motor home more than 1,100 miles from Enid, Okla. But this year, his trip cost him more than $1,000, with diesel fuel averaging more than $4 a gallon.

"About a buck-sixty higher than last year," Biddle lamented.

"Does that hurt?" Mason asked.

"It all hurts," Biddle said.

No other major American sport is hurt more by high gas prices than NASCAR, where fans travel 400 miles round-trip on average to see a race. But those aren't the only Americans hurting at the pumps.

As consumers began hitting the road Friday for the Memorial Day weekend, they faced the sobering reality that it now costs $87 to fill a Ford Explorer SUV, up $14 from last year, and $72 to fill a mid-sized Honda Accord, up $12.

That's because gas prices, which took another jump higher overnight, are up nearly 20 percent, or 65 cents a gallon, over the past year, to average nearly $3.88 a gallon nationally. But unlike this time last year, when gas prices were at their peak for 2007, pump prices now show no signs of halting their daily assault on the record books.

"Four dollars (a gallon) is a done deal now," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill. "We could go significantly above that."

On average, drivers in Alaska, Connecticut, California, New York and Illinois are already paying more than $4 for gas, and an increasing number of stations around the country are posting prices higher than $4. In Alaska, where the average price of regular gas stood at a national high of $4.181 Friday, it now costs $94 to fill an Explorer, and $77 to fill an Accord.

Nationally, the price of a gallon of regular gas rose 4.4 cents overnight to a record average of $3.875, according to AAA and the Oil Price Information Service. Prices are headed even higher in coming days because of oil's dramatic rally this week to a new record: more than $135 a barrel.

"We're going to see some more significant increases here in light of what we've seen in the last few days," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J.

Oil prices fluctuated Friday after as investors placed bets before the long holiday weekend. Light, sweet crude for July delivery rose $1.38 to settle at $132.19 a barrel on the New York Mercantile Exchange, after alternating between gains and losses.

Supporting prices was the dollar, which weakened against the euro and attracted more investment money to energy futures. A growing number of investors have come to view commodities such as oil as a hedge against inflation and a falling dollar. Also, a weaker greenback makes oil futures less expensive to investors dealing in other currencies. Many analysts see the dollar's protracted decline as one of the chief reasons oil prices have doubled over the past year.

Growing demand for fuel is also helping boost oil prices. Demand for diesel has spiked in China, where power plants in some areas are running short of coal after last week's earthquake. But even before the quake, Chinese diesel imports were rising sharply. China's government has released nearly 170,000 barrels of fuel from its strategic petroleum reserve this week to ensure adequate supplies in earthquake areas.

"China's just hungry for diesel," Ritterbusch said.

Diesel prices in the U.S. rose 5.9 cents to a record national average of $4.649 Friday, according to AAA and the Oil Price Information Service. Diesel's rise has been far more dramatic than gasoline's; diesel prices are $1.73 a gallon higher than one year ago. Diesel prices are averaging more than $5 a gallon in some parts of the U.S., and may rise above an average of $5 in California and New York state over the weekend, Kloza said. Diesel is used to fuel most industrial vehicles, and is a big part of the reason prices for food and consumer goods are rising.

Heating oil, which is closely related to diesel and often traded as a proxy for the fuel, rose above $4 a gallon on the Nymex on Thursday for the first time. On Friday, June heating oil futures fell 8.87 cents to settle at $3.8656 a gallon. Analysts cited profit-taking for the price swoon, but expect heating oil futures to resume their upward course next week.

Oil prices did come under some pressure Friday as some investors collected profits ahead of the weekend. Many analysts argue that oil prices have risen well beyond levels that can be justified by supply and demand fundamentals; an increasing number of analysts are referring to the situation as a bubble. U.S. demand for fuel and oil has fallen this year. Some analysts see signs in a recent switch in the relationship between the price of the current July crude contract and prices of crude for delivery in future months that tell them prices could soon fall.

Analysts also say a significant reduction in demand for gasoline could bring prices down. Energy Department data shows gasoline demand has fallen for much of the year, and new Federal Highway Administration data shows the number of miles Americans traveled fell 4.3 percent in March compared to the previous year - the first year-over-year drop in March travel since 1979.

But few analysts are willing to call an end to oil's rally, noting that investors just continue to plow money into the market, pushing prices ever higher.

"Big mo (momentum) is driving this thing now," Kloza said.

In other Nymex trading Friday, June gasoline futures rose 6.63 cents to settle at $3.396 a gallon, and June natural gas futures rose 16 cents to settle at $11.857 per 1,000 cubic feet.

In London, July Brent crude futures rose $1.06 to settle at $131.57 on the ICE Futures exchange.

[whofhearted0]

"Steve Biddle drove his motor home more than 1,100 miles from Enid, Okla. But this year, his trip cost him more than $1,000, with diesel fuel averaging more than $4 a gallon."


That''s a bargain vacation!! For two or more people, driving (even a motorhome) is still cheaper than flying.

[rudy654-2009]

Actually, Americans having been driving less, a lot less over the past month. It didn''t change things at all. The monopoly system that oil has over our country and government, actually cuts back on production the minute Americans drive less to maintain a high profit level. This is gouging plane and simple and they need to be put in jail. At any rate, there are these stupid people who regardless, will be all over the road on the weekend.

[haoli25]

OPEC has declared economic warfare on the world.

[georgew1956]

i''m going nowhere and cbs say''s people are on the move it was suvade less people are driving now so cbs where are you getiing your poll are you tring to start some sort of driving frinzey do you cbs own stock in oil why would you say this before the weekend
you cbs are always wanting the big anything.

[rudy654-2009]

I am now wondering if it is the strategy of this government to bring the US into national emergency by means of this price gouging? Time will tell.

[rudy654-2009]

I guess that trip to walmart to buy all those chinese made items is costing us in more ways than one.

[nothappyatall]

"Steve Biddle drove his motor home more than 1,100 miles from Enid, Okla. But this year, his trip cost him more than $1,000, with diesel fuel averaging more than $4 a gallon."

So doing the math he squandered about 250 GALLONS of diesel to go watch a freaking car race. WHen gas hits $8 a gallon I think we''ll see the idiocy of driving a land barge 1100 miles to watch a car race on a weekend jaunt, ditto for driving aunt Mildred''s fat arse 4 states over just to have thanksgiving dinner.

I keep remembering that huge tax break the idiot son put in the tax laws a few years ago that gave some buyers of light trucks (SUV''s) a huge write-off (You had to have a business, any business). Dealers were selling the things like hot cakes because of it. Now gas is through the roof, Hmmm.

[extremophil]

What does the world think we''ll do over the holiday weekend, sit at home and stare into the walls? And just because we''re "hitting the road" doesn''t mean we''re driving 400 miles.

[veteran72]

"Steve Biddle drove his motor home more than 1,100 miles from Enid, Okla. But this year, his trip cost him more than $1,000, with diesel fuel averaging more than $4 a gallon."

So doing the math he squandered about 250 GALLONS of diesel to go watch a freaking car race. WHen gas hits $8 a gallon I think we''''ll see the idiocy of driving a land barge 1100 miles to watch a car race on a weekend jaunt, ditto for driving aunt Mildred''''s fat arse 4 states over just to have thanksgiving dinner.


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Posted by newster1 at 09:47 PM : May 23, 2008
+ report abuse

In his defense, it IS the Corn Bumpkin 500 afterall...
(A must-see Redneck Event)*

*(All apologies to Floyd) :0)

[donevis-2009]

The rising price of oil is due to the falling power of our Dollar. A country that just keeps printing money and can not be backed up with anything other than debt, is going to be shunned. The world is quickly turning to the Euro as standard, including the price for a barrel oil. Anyone remember August of last year when Israel demanded their 30 Billion in foreign aid be paid in Euro''s instead of Dollars? They''re not stupid when it comes to money. Still our endless war goes on. Billions of dollars and far too many of our children are being sacrificed. And for what? If there are terrorist that want to hurt us they could have easily come across our open southern boarder and targeted restaurants and shopping Malls as they''ve done in other countries. This War monster seems to be feeding on our fears as we stupidly continue to throw our young people and financial future in to it''s jaws. "God Speed USA"

[popstom1]

The price paided to OPEC for a barral of oil is $48
dollars Wall street added $87 dollars now whats
wrong with this picture

[well_bygod19]

After its all over with, said and done, and our wonderful government runs this country into the ground, like they have the constitution, because they wont do a thing to give us some help at the pumps, i honestly think that the indian nations will be the only ones left standing. Can everybody say POETIC JUSTICE !!! The government took their land away from them because of greed. And now as that same greed drives this country into financial and economical disaster, the indian tribes have rise above and became self-sufficient with a strong belief in taking care of their own and not creating hardships on their people. Looks like our wonderful government needs to step back and take a lesson.

[popstom1]

As long as you let them thay will stick in your A$$
people are stupid here we need a national strike

[mdell27]

Peak Oil. Peak Oil. Peak Oil.

[timdgrim]

i honestly think that the indian nations will be the only ones left standing
Can everybody say POETIC JUSTICE !!! The government took their land away from them because of greed. And now as that same greed drives this country into financial and economical disaster, the indian tribes have rise above and became self-sufficient with a strong belief in taking care of their own and not creating hardships on their people. Looks like our wonderful government needs to step back and take a lesson.
Posted by well_bygod19 at 11:34 PM : May 23, 2008

Will this mean we''ll have CASINOS in every state?
As our illiterate fear/war monging leader would say..."Bring it on."

[michellem99-2009]

I am going to stay right here at home as I have done for years. I will as last year be right here. newster Dear how true. They can watch the bloody car race on TV. I don''t have a head for math as I could not learn it. Common sense said the gas is too high. They will drive. I WILL TAP MY WHITE CANE AND WALK TO SAFEWAY AT THE TOP OF THE HILL.

[robstrck]

MichelleM99

Stay home then. Why is it your''s or anyone else''s business if someone spends his hard earned money anyway he sees fit? Until the socialists take over, this is still America. Mind your own business

[ubrew12]

Title: "Despite Gas Prices, Americans Hit The Road"

Lets go see Mother Nature,

before our ''going to see Mother Nature'' kills her.

[gce65]

Saudi Prince: "Drive, you little lemmings! Drive! I want to build a new palace on the Red Sea. Ha ha ha."

Cheney: "Your highness, may I bring you more champagne?"

Saudi Prince: "No, you stooge! Get off your knees and go back to America and promote Nascar! Promote going RVing! And bring me more virgins on your next trip here."

Cheney: "Yes, your highness."

[mommakat64]

During the recent hearings with the "oil barons" in DC, California''s Rep. Maxine Waters had a "Freudian slip" and states ON TAPE that "this Liberal", meaning herself, "was about socializ...ah, ah,..., basically, the government taking over your companies." Does she really want to turn this country into another Venezuela?!? That''s what Hugo did..he socialized his nation''s oil industry. And, the really scary part is that she caught herself in the middle of that word "socialization" and went on to utter the really scary idea of the government "taking over" businesses. Now we have a Liberal-Socialist outing herself...and MAYBE her party''s true colors????

[nothappyatall]

are carrying out to spray us? I mean, it would be nice to look up and realize that I''''m not being sprayed with ''''ETHYLENE DIBROMIDE, NANO-PARTICULATES OF ALUMINUM AND BARIUM AND CATIONIC POLYMER FIBERS WITH UNIDENTIFIED BIOACTIVE MATERIAL''''.
Posted by t_barr


Sigh... yet another Art Bell show moron who believes we are ALL being secretly sprayed with all kinds of toxic chemicals (chemtrails), forgetting that what is put in the air would ALSO affect those spraying and their familes. This is the govt you speak of, the same bumbling morons who cant keep secrets or even hide revealing documents, yet we are to believe this whole thing has bee kept secret so many years by so many, from the pilots to the mechanics and everyone in between.

Take a pill, and shut Art Bell OFF!!

[aztecdakota]

I''m on Social Security, wife can''t get none. We got us a 5 pound chicken 77 cents a pound. 99 cents worth of stuffing, and some squash, for Memorial Day. 6 dollars worth of gas (one one/half gallons) in the car. That car aint moving. Sorry us old Veterans can''t go to the cemetary, or even visit our grandchildren, so we can''t join them 38 million people out on the road. Fortunately we can all email one another on Monday. But we will remember our loved ones, and comrads, who are no longer with us.

[nothappyatall]

why is it your''''s or anyone else''''s business if someone spends his hard earned money anyway he sees fit? Until the socialists take over, this is still America. Mind your own business

Posted by robstrck

As long as it affects EVERYONE and everything from food to home building as gas prices do, then it BECOMES our business what, where and how much fuel is WASTED- THAT is why there is a demand for more efficiency in engine MPG required by law.

[rudy654-2009]

Stay home then. Why is it your''''s or anyone else''''s business if someone spends his hard earned money anyway he sees fit? Until the socialists take over, this is still America. Mind your own business


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Posted by robstrck at 12:31 AM

You know, in a drought, you may be able to afford more water than I can, but...it doesn''t give you the right to use all you want just because you are wealthier. The problem with this fuel problem is that it affects all of us, and until we take a united approach we might as well let the industry continue to abuse us.

[rudy654-2009]

French protesters also blocked delivery trucks from entering or leaving Total oil refineries at Dunkirk and Gonfreville on the English Channel, company spokeswoman Elisabeth de Reals said. She said the refineries were continuing to work as usual but could not take or make deliveries.
***********

The French have the idea. The oil industry is taking advantage of becoming rich off of a limited natural resource that belongs to all of us. They produce a barrel at 13 dollars and have the nerve to drive the price up to 130 dollars for the same barrel. It''s time to tell them that their power is limited, and there will be consequences to pay for their abuse of it.

[deacon20081]

I have a cold hard fact to dispense......
Every time Gas rises so do your costs for services and for those contractors who build your homes. Materials and travel expenses are passed on. If a contractor has to come to your home for a power outage lets say, and do a repair there will be double the cost just to show up at your door.
Free Estimate? No longer...... An estimate is time and money that you will pay for regardless.
Those who can afford it? Fine, prices will triple for you. Some of us take care of the less privileged and do our best to ease the burden, however every time oil costs rise Bush/Cheney make more money one way or the other and you loose. Feed the kids or restore power or fix that sewer or install that crystal chandelier... yeah it''s all good huh

[nonayabiness]

Staying home as always this weekend. Just having a local family meal. 3 of our 4 visitors will be carpooling. We got burgers, dogs, buns, baked beans, mac & cheese and chips and drinks. About $20 for a meal for 7. Not too bad. Better than wasting $1000 in gas to watch cars turn left all weekend.

[michellem99-2009]

Smart asre park that car. When the gas goes up we all pay. It my and everybody''s business. Them troops are dying over this issue of oil. Conserve. I have lived in drought areas. All people care about is them seleve. I told a robot that answers the phone I TOLD IT TO LEARN. If ye must go on the road do so but know yer driving the cost of things up. Dear Vet thank ye. It is 12.30 am. I have one little light on to talk to ye.. Time to turn it off and computer. mite.

[samrensho]

One could always demand that guvment invest in public transport rather than trillion dollar wars but that''s a pipe dream. Heroin addicts don''t quit using just because the local pusher raises the price. Drivers are the same.

[condumbism]

Name one difference between John McShames Straight Talk Express and the failed policies of Ronald Reagan? Reagans policies of the 1980''s, and GW Bush policies of 2001 - 2008 are the root of all that now ails the US economy! John McSame has recently sold out to Republicon status quo. John McShame is not fit to lead the USA in any way!

[thee0racle]

News Flash: despite really bad air, Americans continue to breathe. Repugllican corporations take this as a green light for continued mismanagement of our planet.

[slim1h2o]

Yesterday, CBS had a article that stated that nobody was going anywheres, now they''re saying 38 million are driving?

Hey you 38 million dumb fu(ks,, stay home,,and get this national strike started. Only go where you have to. Like picking up groceries, or the doctors.

[hunterdon6]

Some of the building product I buy regulary are up 25% or more from last year. Alot of the food I buy is up a good 25% from last year. Why? Because of the increased cost to ship the product to the market. Gas in Michigan is up to $4.18 a gallon and diesel is near $5 a gallon. I only drive when I can combine 3 or 4 trips into one. There maybe an increased demand in China for oil, but that is replaced by a decreased demand here, because China has all our factories now. If there was a shortage of oil, gas stations would be out of fuel. With the current world demand for oil, the known oil reserves will last 100 years. Corporate greed is the reason for the high prices.

[slim1h2o]

Corporate greed is the reason for the high prices.

Posted by hunterdon6 at 06:29 AM : May 24, 2008

Thats why we need to not drive this weekend. Stop the corperate greed, stay home, or go to a neighbors or invite them over. Go to a local beach, or a local resort area, if you have one in your area. Or how about visiting relatives that you may not have seen in awhile.

Do anything but drive 200 or 300 miles. Send a clear and thorough message to big oil business, AND to Bushit and Cheney.

We are no longer their saps or stooges.

[jesterbelle]

continued

How do you get someones'' attention that is bound and determined not to listen to you?A punch in the nose works wonders.Think of what would happen if the first thing this union did was simply walk off their jobs for a week to show those in power that the union was serious.With enough membership,it would cripple the country,and definitely get DCs attention."DC is angered about what the union has done,and is going to outlaw it.",you say.The union would still work even if it was outlawed.If ALL of the members stuck by each other no matter what happened,and simply refused to participate until they were heard,we could bring the RIGHT changes almost overnight.Think about it.

[jesterbelle]

Some believe that a third party is the solution to our dilemma.It would have some effect,but it would still be hampered by the same problems that plague the two we have now.The main problem with this idea is that you would still be limiting the members'' power by continuing to try to control the dynamic(Everchanging political scene and politicians.)with the static(Your vote that doesn''t change until the next election.).What is the solution?Instead of a third party,a nationwide union.Why a union?It would be more flexible and able to respond quickly to unwanted changes.Think about it.If all of the unions that exist now joined and became one,and organized for a huge recruiting drive,going after like minded individuals instead of fighting entrenched "Right to work for nothing" blue collar groups at businesses,you could swell the ranks without even having to picket one single business. continued

[messiahx4eve]

I imagine as long as the media keeps printing stories about how the oil companies are within the same bounds as other corporations, we will keep taking and eating that big bite of S*H*I*T sandwich and gag it down. When they finally get it all, it will be worthless to all but themselves and they themselves will be worthless as human beings. This is clear and present price gouging and theft. We had four gas stations have orchestrated drive offs of 16 cars at 8 different gas stations. Being called a service station is an honor, they have all lost that. I have seen many acts of vandalism that just goes unreported because no one cares about oil company property any more, not even the authorities.

[cockapoo1]

There''s never any disadvantage to having more choices. What you guys did to Ralph Nader last election was appalling.

[longtree-2009]

Haven''t seen less vehicles on the freeway or on surface streets. The $4 a gallon does not seem to be hitting everyone in the wallet. Just read where people in Venezuela, Chavez land, pay 12 cents a gallon but they are sitting on big oil fields. Wonder if truly there are absolutely no oil fields left in the USA thus we must import our requirments.

[dowjones20k]

Interesting how many folks just do not understand the dynamics going on here .. and the blame game continues ..

Ask yourself a few questions ...

When was the last time a refinery was built in the USA?

When was the last time congress allowed oil companies to drill off the gulf or any other coastline?

How much is the dollar worth, as oil prices are based on the dollar?

How come Americans can''t seem to STAY HOME and stop driving thier 10-15 mile a gallon SUV''s?

Our politicians/citizens have brought this on to our country .. with all the new technology in exploration and drilling we could certainly begin to recover oil in our own country and decrease the imports, however we continue to prop up the middle east and allow them to dicatate our misery.

So we reap what we sow .....

Get used to it people ... I believe 7 dollar a gallon gasoline is possible by next year, unless we make some serious commitments to get off foreign oil.

[starleo146]

what we need I feel,is to send a strong message to our government to get of your behinds and solve it. The only thing I see is to get on here and send a strong message ,and that is to strike for a month until we do something . You say what do we live on ? well are you living now, we the people have to send this message, and this an election year who know what we could do, no cars on the road get your supplies you need and let these oil companies know we know their game, and it is highway robbery with a 42 billion profit for them, what ya think folks

[starleo146]

Yesterday, CBS had a article that stated that nobody was going anywheres, now they''''re saying 38 million are driving?

Hey you 38 million dumb fu(ks,, stay home,,and get this national strike started. Only go where you have to. Like picking up groceries, or the doctors.

Posted by slim1h2o at 06:11 AM : May 24, 2008
+ repor

Way to go slim1h2o this is exactly what we should do, and this story is for the middle east, they want them to believe you can''t stop us, but they can, and they will, so hit our oil companies where it hurts in the pocket book, 42 billion is enough profit for you, now we are taking over at least 1 full month and if we see it working maybe even longer

[slim1h2o]

Posted by starleo14672 at 08:56 AM : May 24, 2008

Exactly,,And thank You for agreeing,,

If we could get evrybody else on board,,we''d be doing something!!

[omnibus66]

I don''t know who these 38 million are, certainly not me or anyone I know. Our family has canceled all travel plans for the rest of this year.

We have to budget everything, and my records show that our grocery spending is now 25% higher than a year ago. I''d rather have something to eat than do unnecessary driving.

Aren''t you glad you voted for Bush, TWICE?

[starleo146]

TRUCKERS OUT THERE lets STRIKE AND help US for a change we can solve this ridiculous price hike, stop giving money to the oil companies and middle east we are stronger than this. NO MORE

[witchsince91]

I LIKE HIGH GAS PRICES. HERE IN TEXAS MY WHOLE FAMILY WORKS FOR EXXON. I HOPE GAS GOES TO $10/PER GALLON.

[starleo146]

nteresting how many folks just do not understand the dynamics going on here .. and the blame game continues ..

Ask yourself a few questions ...

When was the last time a refinery was built in the USA?

When was the last time congress allowed oil companies to drill off the gulf or any other coastline?

How much is the dollar worth, as oil prices are based on the dollar?

How come Americans can''''t seem to STAY HOME and stop driving thier 10-15 mile a gallon SUV''''s?

Our politicians/citizens have brought this on to our country .. with all the new technology in exploration and drilling we could certainly begin to recover oil in our own country and decrease the imports, however we continue to prop up the middle east and allow them to dicatate our misery.

So we reap what we sow .....

Get used to it people ... I believe 7 dollar a gallon gasoline is possible by next year, unless we make some serious commitments to get off foreign oil.

Posted by dowjones20k at 08:39 AM : May 24, 2008

your points are very well taken now what do you think the people will do about it

[olebd]

Nobody I know is traveling anywhere either. CBS is sending mixed signals here. Our plans include a community picnic today. We''ll walk to it. Screw the speculators, big oil, and whoever else is behind high gas prices!

[starleo146]

I LIKE HIGH GAS PRICES. HERE IN TEXAS MY WHOLE FAMILY WORKS FOR EXXON. I HOPE GAS GOES TO $10/PER GALLON.


Posted by witchsince91 at 09:34 AM : May 24, 2008

see folks it is this mindset we have to change don''t you think