AAA: Fourth of July Gas Prices Will Have Varying Impact

The number of New Jersey residents who will travel 50 miles or more from home this Fourth of July weekend is expected to drop 3 percent from last year, according to a report by AAA.

The company estimates 1.2 million residents will travel 50 miles or more, down from 1,262,336 in 2010. Nationally, the estimated decrease is just under 2.5 percent.

“Although lower than Memorial Day, gas prices that are still approximately a dollar higher than last year are a factor in the decline of Fourth of July travelers,” said Cathleen Lewis, director of public affairs for the Florham Park-based AAA New Jersey Automobile Club, in a release. “In addition, increased fuel costs are also causing a shift in the demographics of the typical Fourth of July traveler, as higher prices at the pump impact lower income households more significantly.”

AAA says the amount of money spent on gasoline is unlikely to vary across household income groups, but it will consume a larger share of the budget for lower income households.

As a result, the percentage of travelers with a household income of less than $50,000 or less is expected to drop from 41 percent to 33 percent, while travelers with a household income of more than $100,000 are expected to increase to 35 percent from 26 percent.

According to AAA, gas prices this holiday–while approximately 22 cents lower than Memorial Day–are still about a dollar more than Fourth of July 2010. The current national average price for a gallon of regular gasoline is $3.56, whereas last year gas was averaging $2.75.