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SAN DIEGO – Vacation travel is expected to hit pre-pandemic levels and it will be expensive for San Diegans as gasoline prices rise.
“It’s a bit sad, but I think it’s like this, you have to travel,” said the traveler Connor Rule.
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To cut costs, President Biden announced Tuesday that the Department of Energy will release 50 million barrels of oil from the Strategic Petroleum Reserve, which is an emergency supply of oil normally used during natural disasters. The US and a handful of other countries are dragging it into the market in hopes of reducing rising costs during such high demand.
But Alan Gin, an economics professor at the University of San Diego, said it won’t take off that much.
“As a result, it’s not going to fall like a dollar a gallon,” said Gin. “There just isn’t enough out there, but again it could have a small effect.”
He said the price drop could be 10 to 15 cents a gallon. But it will take about two weeks for the effects to kick in and from then on, Gin said the extra oil supply will only take a few days.
The move comes about a week after the president asked the FTC to investigate whether the oil companies raised prices the right way.
Gin said high prices at the pump are the cost of oil spikes. He said an important factor is supply and demand. If the economy recovers it will mean more people will be driving at a time when oil is running out.
“OPEC and Russia have greatly reduced their production during the pandemic and it has increased, but not to the same level as it was before the pandemic,” Gin said.
And that all means higher prices at the pump. According to the AAA Southern California, San Diego gas prices are only 6 cents below the highest prices ever recorded.
In San Diego, it currently costs an average of $ 4.66 for a gallon of regular gasoline. That’s about $ 1.50 more than last year.
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The hope is that once the travel wears off, so will sky-high prices.
“But after the holidays, I think things will calm down a bit and there won’t be that much travel and I think prices will start to go down,” said Gin.
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