Fueled by demand

The surge in gas prices is not deterring people from traveling this Memorial Day weekend.

AAA-Mid-Atlantic expects the number of Virginians traveling this weekend to increase nearly four percent from last year, with about 861,000 Virginians taking trips of more than 50 miles. Still, that is well short of the more than 1 million people who traveled over Memorial Day weekend 2007. 

Windy VanCuren, spokeswoman with AAA Mid-Atlantic, expects the 30-cent increase in gas prices in the last month — to a statewide average of $2.30 per gallon for regular unleaded as of Friday morning — to be an impetus for people wanting to travel.

In Waynesboro, gas prices range from $2.29 to $2.39 per gallon, according to GasBuddy.com. The national average is $2.39 per gallon.

“Believe it or not, the gas prices are actually helping travel because they’re still significantly lower than they were at this time last year,” VanCuren said.

This time last year, the average price for regular unleaded in Virginia was $3.75 per gallon, and last month, it was still at $1.96.

Last year, with gas prices having reached more than $4 per gallon, VanCuren said people were putting off their vacations, something she believes they are not willing to do two years in a row.

“It’s that whole issue of pent up demand,” VanCuren said. “People like their vacations. They need their vacations.”

The people AAA Mid-Atlantic surveys, she says, are those driving 50 miles or more from home, with the average round trip being 680 miles.

VanCuren said the other factor contributing to increased travel is travel bargains that, with the current recession, are out there for people to grab. These include discounts for hotels, car rentals and airfare.

VanCuren said the increase in gas prices has “a lot” to do with crude oil prices rebounding with an increasing demand worldwide and optimism for an economic recovery.

Of late, crude prices have held steady at around $60, due partly to the falling value of the dollar. Oil supplies have been in flux recently. OPEC countries have boosted exports by an estimated 200,000 barrels a day in the four weeks to June 6, according to tanker tracker Oil Movements.

But she said the recession has had one benefit: it’s “the one thing that’s helping keep oil and gas prices from overreaching.”

An improved economy, however, could mean higher gas prices, though AAA Mid-Atlantic does not expect prices to average more than $2.50 per gallon through the summer.

“As the demand increases, not just in the U.S., but worldwide ... you’re going to see the prices go up because it’s just the common economics of supply and demand,” VanCuren said.

The Associated Press contributed to this report.