Holiday Travelers Hit the Road as Midwest Gas Prices Fall

Midwesterners gassed up their vehicles and hit the road for the holiday weekend as pump prices continued to fall after two states suspended their gas sales taxes and the federal government began an investigation of possible price gouging.

“It’s the Fourth of July weekend. What are you going to do--stay home? Plans are all on,” said Tom Woody of Madison, Wis., as he filled his tank en route to a paddling trip in southern Wisconsin.

In Illinois, pump prices took a big dip Saturday, with prices in Chicago falling below $2 a gallon for the first time since Memorial Day as station owners began passing along savings created by the lifting of the state’s 5% sales tax on gasoline.

Prices in one north-side Chicago neighborhood fell to $1.99 per gallon, down as much as 16 cents per gallon since Thursday. Prices were even lower in the suburbs and downstate, where the cost of regular unleaded dropped 10 cents to $1.85 per gallon at a Citgo station in Wheaton and fell 11 cents to $1.66 per gallon at the Meijer gas station in Champaign.

Illinois legislators voted overwhelmingly last week to suspend the state sales tax on gas for six months to appease voters angry about the rapid rise in pump prices. Gov. George Ryan admonished station owners to pass the savings on to customers.

Indiana Gov. Frank L. O’Bannon also suspended his state’s gas tax for 60 days.

AAA Chicago Motor Club spokeswoman Norma Cooper said Saturday that, even without the sales-tax rollback, the number of Illinois residents traveling more than 100 miles over the July Fourth holiday was expected to be up slightly over last year.

“People have probably already made plans, and I don’t think eight cents difference would make a difference one way or another; we expected near-record travel anyway,” she said.

Wisconsin authorities said traffic volumes appeared normal for the July Fourth weekend.

Resorts and campgrounds throughout Michigan reported brisk business Saturday--with scarce evidence that high gas prices discouraged any would-be travelers.