By Stephanie Kelly and Arathy Somasekhar

NEW YORK (Reuters) – U.S. Memorial Day weekend journey is anticipated to be the busiest in two years as extra American drivers hit the highway and shake off coronavirus lock-ins regardless of excessive gas costs.

The kickoff to the summer time U.S. driving season might point out simply how a lot shoppers are prepared to tolerate gas worth will increase. Miles traveled by motorists rose 5.6% within the first three months of the yr whilst the value of a gallon of standard gasoline has jumped 50% within the final yr, to greater than $4.59 on common nationally, based on the American Car Affiliation.

“People simply aren’t having a serious response but to the excessive worth,” mentioned Patrick De Haan, head of petroleum evaluation at worth tracker GasBuddy, who says the nation may see $5-plus costs earlier than lengthy.

Ten states and the District of Columbia are already paying greater than $5, with California’s statewide common surging to greater than $6 a gallon.

Some 39 million individuals will journey 50 miles or extra by automobile through the Memorial Day Weekend, up 8.3% from a year-ago and near pre-pandemic volumes, based on motorist group the American Car Affiliation.

‘I’M GOING TO DRIVE’

In Barnstable, Mass., Dean DeLaHaye and spouse Brigitte have been getting ready for a 250-mile spherical journey to New Hampshire to go to kin.

“Most individuals are sick of staying dwelling within the pandemic,” mentioned DeLaHaye, who refueled his Volkswagen (ETR:) Golf for the journey. “Excessive costs haven’t affected us. I’ll drive,” he added.

Gasoline costs have surged on rising demand and tight vitality provides resulting from refinery closings and fewer imports after Russia’s invasion of Ukraine. U.S. gasoline inventories have fallen for seven consecutive weeks, to 220.2 million barrels, the bottom since December, U.S. Vitality Data Administration information confirmed.

Greater U.S. exports are additionally driving gasoline costs greater by decreasing inventories. Demand from Europe and South America has U.S. motorists competing with shoppers elsewhere, mentioned John Kilduff, accomplice at commodities funding agency Once more Capital.

“If exports persist at this elevated tempo and refinery runs – already close to the high quality for cheap utilization charges – fall inside our expectations… retail gasoline costs may climb to $6 per gallon and even greater,” mentioned JPMorgan (NYSE:) analysts.

Consumption of motor gasoline is about to hit 9.12 million barrels per day (bpd) this month, and attain a peak for this summer time at 9.31 million bpd in July, based on EIA information.

As an alternative of driving much less, U.S. shoppers probably will look to chop prices elsewhere, equivalent to by eating out much less, mentioned AAA spokesperson Devin Gladden.