As petrol prices approach US$4 a gallon amid Iran war, Americans rethink holidays
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Prices are seen at a petrol station in Capitol Hill amid the US-Israeli war with Iran, in Washington, US, on March 19.
PHOTO: REUTERS
Audra D.S. Burch
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NEW YORK – Ms Dina Guillen had planned to make the 836km drive from her home in the Rio Grande Valley to Dallas to visit family for her teenager’s spring break. But after calculating the cost – particularly the painfully high price of petrol – she decided to figure out a cheaper way.
So instead of an eight-hour journey through Texas two weeks ago, she took a two-hour drive to Corpus Christi. The change shaved off about US$100 (S$129) in petrol costs.
Ms Guillen, 46, a home healthcare worker, said she still hopes to get to Dallas with her daughter in the coming months, but only if petrol prices drop.
“We’ll wait until the summer and see what happens,” she said. “It’s scary what’s going on.”
Spring break, one of the busiest holiday seasons of the year, has presented a trifecta of headaches for travellers: soaring petrol prices and airfare spikes, long and unpredictable airport security lines tied to a partial government shutdown and persistently high food costs.
The Iran war, along with the spring break season, has pushed petrol prices to levels not seen since 2022, when Russia’s invasion of Ukraine affected the global oil supply.
The cost of airline fuel has also surged, as have fares, but generally, demand for tickets has not yet dampened. That includes travellers who are purchasing tickets now to lock in prices for summer travel.
“Our indicators show that demand is holding strong,” said Ms Casandra Matej, the chief executive of Visit Orlando, a tourism association, noting that travellers typically book spring break trips well in advance.
But as the summer approaches, that demand could change.
“As people have to spend more for petrol, that’s going to eat into their budget for other things, including discretionary holiday funds,” said Mr Eric Rosen, director of travel content at The Points Guy, a travel and loyalty points information website.
“If petrol prices remain high, you are going to see a lot of people re-evaluate their road trip plans for the summer.”
Petrol prices have climbed by approximately 34 per cent since the war began on Feb 28, with the national average price now about US$3.98 and Brent Crude, the global benchmark for oil, rose to about US$111 on March 27. NYTIMES
