Lower gasoline prices ease holiday travel plans
The Shell gas station at the intersection of Lake-Cook and Rand roads near Deer Park is selling gas for $1.99 a gallon.
The low price is causing some traffic jams at that intersection, said customer John Liambotis of Arlington Heights, who was filling up at the station.
Experts are saying gasoline prices likely will continue to decline while more people are expected to be on the road for the Fourth of July holiday.
"The Midwest, including Illinois, is reaping the benefits of significantly cheaper gas," said AAA spokeswoman Beth Mosher. "Gasoline inventories have risen and demand has been mediocre."
In Illinois, 2.1 million travelers are expected to be driving for the holiday, up 2.9 percent from 2016, and they will see gas prices about 20 cents per gallon lower than a year ago. Drivers can expect average gas prices at $2.32 per gallon, down from $2.56 per gallon during the same period in 2016, according to AAA - The Auto Club Group based in Aurora.
Week over week, gas prices mostly have dropped due to lower demand in June. And high oil production rates in the United States, coupled with news from the Organization of the Petroleum Exporting Countries, or OPEC, that Libya and Nigeria increased output last month, could mean this trend will continue, said Mosher.
The low gasoline price also is a contributing factor on increased travel booking at AAA. Travel bookings are up nearly 12 percent in Illinois and more than 31 percent in Indiana, compared to this time last year.
A sampling Friday of some of the lowest gasoline prices showed $2.25 per gallon in Libertyville, $2.29 in Elk Grove Village, and $2.27 in Lisle, according to GasBuddy.com.
In the Chicago and suburban market, the average price Friday was $2.50, or 18.3 cents less than the same day last year, and 2 cents less than Thursday. Prices likely will continue to decline through the holiday, said Patrick DeHaan, senior petroleum analyst in Chicago for GasBuddy.com,
He agreed that supply is outpacing demand.
"Even though OPEC cut production last year, U.S. domestic oil production is at its highest level in two years and has offset any of those cuts by OPEC," DeHaan said.
•Daily Herald Photographer Mark Welsh contributed to this report.