Over half of Americans report that soaring gas prices will prevent them from traveling for Thanksgiving

Several factors are contributing to the current spike in fuel prices, including crude oil costs and a shortage of rental cars.

These issues not only cause frustration but also impact your budget. Unfortunately, they are likely to persist during what is anticipated to be a busy Thanksgiving period. Some preliminary data indicates that, despite the easing of certain pandemic restrictions, many travelers are choosing to remain home for the holidays due to high costs.

Here’s what you need to know if you intend to drive this Thanksgiving holiday.

What’s driving the rise in gas prices?

Fuel prices have skyrocketed, as you may have noticed during your recent visits to the pump. According to AAA, the average price for a gallon of gas is currently $3.41. In states like California and Hawaii, prices can exceed $4 per gallon.

As explained by Andrew Gross, a public relations manager at AAA, the surge in prices is primarily driven by crude oil costs. Currently, crude oil is priced around $80 a barrel, a significant increase from the low $60s seen in August. He noted that the price of oil contributes to 50 to 60% of the pump price, meaning that as crude prices rise, consumers pay more at the pump.

While it may not seem like it when you swipe your card at the pump, gas prices are actually starting to fall. Yes, the national average price has decreased by 2.6 cents over the past week, according to GasBuddy, a service that helps you locate the cheapest gas available nearby.

The company gathered data from over 150,000 gas stations across the United States. Prices are anticipated to remain stable at least until Thanksgiving, which is encouraging news for travelers preparing for the holiday.

"Although it's uncertain how long current market trends will sustain the drop in gas prices," stated Patrick De Haan, head of petroleum analysis at GasBuddy, "it seems this decline will persist through Thanksgiving, allowing millions of Americans to prepare for their holiday travel."

However, even this modest decrease may not be sufficient to persuade Americans to travel by car.

While U.S. airlines are seeing a surge in international bookings and are increasing their services, as highlighted by my colleague, TPG senior aviation reporter David Slotnick, the unpredictability of gas prices may lead to fewer cars on the road this holiday season, regardless of falling prices.

With nearly 60% of the U.S. population fully vaccinated against COVID-19, travelers are preparing for the first somewhat normal holiday season since 2019. This is evident in recent data from the Transportation Security Administration, which reports screening over 2 million passengers on multiple days in November.

The holiday season arrives just weeks after the U.S. lifted travel restrictions for vaccinated international travelers and as several states ease COVID-19 guidelines. Yet, according to its 2021 Annual Thanksgiving Travel Survey, only 32% of Americans plan to travel for Thanksgiving this year, down from 35% last year — indicating that factors beyond the ongoing COVID-19 pandemic are contributing to this decline.

Over half of those surveyed indicated that high gas prices were the reason they chose to stay nearby.

"Like last year, drivers are facing an uptick in [COVID-19] cases as we approach the Thanksgiving holiday, when many travel to be with loved ones. However, this year we are also just a few cents away from experiencing the highest Thanksgiving gas prices on record," noted De Haan.

Ways to save on fuel costs

While gas prices may be high at the moment, there are numerous gas station rewards and loyalty programs, as well as occasional credit card statement credits, available to help you save on fuel. Here are some of our top picks:

• Fuel Rewards: A loyalty program designed specifically for Shell gas stations.
• Circle K Easy Pay: Enjoy a 30-cent discount per gallon for the first 100 gallons or 60 days; afterward, you’ll save 6 or 10 cents per gallon based on your location.
• GetUpside: An application that allows you to redeem offers for savings on each gallon of gas.
• Pay with GasBuddy: This program provides various levels of cash back with every fill-up.
• Grocery store fuel point programs
• Credit card perks: Rewards programs from providers like Chase and American Express often include cash-back options on fuel purchases at stations such as BP and Shell.

If you're not interested in joining another rewards program, there are alternative ways to save money at the pump.

According to AAA's Gross, regular vehicle maintenance is another way to reduce gas expenses. One of the simplest methods to enhance fuel efficiency — and save on gas — is to ensure your tires are properly inflated. If it’s been a while since you checked, your tires may be low.

Additionally, consider applying for a credit card that provides bonus points on gas station transactions. This way, even as fuel prices rise, you can still earn rewards for your spending.

Conclusion

Driving during the holidays is expected to be costly, even if gas prices experience a slight decline or stabilize.

It's evident that elevated gas prices will likely deter some travelers from taking to the roads this Thanksgiving.

If you find yourself in this situation — or if you're uncertain about driving — be sure to monitor gas prices in your area, especially if your plans are flexible. Should you decide to drive, utilizing a gas station's rewards program or app can help you save at least a few cents.