Chicago-residents will face the highest Thanksgiving Day gas prices they’ve seen in five years, experts say.
Regular, unleaded gas prices are projected to be $2.74 per gallon on Thanksgiving, up 17 cents from last year. That would be the highest figure since 2014, when the average price was just over $3, according to the American Automobile Association.
This data accounts for Cook, DuPage, Will and Lake counties.
Experts attribute the price increase to geopolitical events and local policy decisions.
President Donald Trump’s ongoing trade war with China has certainly played a factor. So have bubbling tensions in the Middle East. But the Illinois gas tax implemented in July is perhaps the single-biggest impetus.
“Thanksgiving prices would probably be 10 cents lower than last year if that gas tax hadn’t been implemented,“ said Patrick DeHaan, the head of petroleum analysis at GasBuddy.
The state’s tax on motor fuel doubled to 38 cents per gallon. As part of the bill, Cook and its surrounding counties were given the latitude to increase a separate gas tax to an additional 8 cents per gallon.
Higher gas prices affect travel behavior. Thirty percent of people surveyed said high gas prices were impacting their travel plans, according to GasBuddy.
And in the suburbs, motorists may face even higher prices than normal.
Blame Speedway for that, DeHaan said. The discount gas station — mostly in the suburbs — regularly undercuts its competitors, forcing other companies to follow suit, according to DeHaan. Eventually, this forces everyone to sell at a loss. When that happens, Speedway increases its prices, often by anywhere from 30 to 50 cents at a time, DeHaan said. The rest then match their competitor, and the process starts all over again.
That cycle usually lasts every two to three weeks in the fall or winter and every seven to 10 days during the summer.
This year, that cycle coincides with the week of Thanksgiving.
Despite these considerations, it may still be wise to fill up your tank on Thanksgiving Day, rather than the few days preceding or succeeding it.
“There’s kind of a myth that prices go up on the holidays, but they actually don’t,” DeHaan said. “People aren’t working. The kids aren’t in school. So there’s less demand from that. By and large, when you’re getting to your destination, you’re sitting there for three days.”
