High Gas Prices Shouldn’t Cancel Family Vacations

According to a Reuters report on CNNMoney.com the higher gas prices probably won’t be enough to cause families to cancel this summer’s driving vacation this summer.

The federal government’s top energy forecasting agency, Energy Information Administration (EIA), delivered its report on the same day MapQuest released a new poll showing that one in 10 respondents planned to cancel trips because of high gas prices.

Even though summer gasoline prices are forecast to be an average 34 cents higher than last year, motor fuel costs won’t cut that much into the family vacation budget, the EIA said.

At an estimated average summer price of $2.71 a gallon, the added gasoline costs for a 500-mile round trip vacation in a vehicle that gets 20 miles per gallon would be just $8.50, the agency said.

Even if gasoline soars 75 cents higher than last year to a record $3.12 a gallon and vehicles only get 15 miles per gallon, the fuel bill would be just $25 more for a 500-mile round trip.

The EIA pointed out this would “likely be less than lunch for a family of four at a moderately priced restaurant.”

Seems reasonable to me. It is amazing how the psychology of paying more for gas might change our plans. Would an extra $25 cause you to cancel your vacation?