As $4 Gas Nears, Americans Driving Less

If you missed it on the way to work this morning — and for some reason didn’t drive this holiday weekend — the price of gas is at another new high: $3.94 a gallon nationally. As you can plainly see, that’s really close to $4. It’s up 7 cents since we last talked about it Friday.

The Department of Transportation said Monday that in March — when gas prices were still a reasonable $3.50 — Americans drove 11 billion fewer miles than the year before. That’s a big number. Divide that by a 25-mpg average fuel economy — we’re just picking that number as an average — and that’s 440 million fewer gallons of gas used, or about the average daily consumption of gas in the U.S. 

That might not sound like a lot, but it should be enough to significantly lower demand for gas. That’s one of those factors that should lower gas prices, yet we keep seeing them go up. The Detroit News tries to explain what makes up the price of a gallon, but even its attempt falls short of answering the question fully.

Record gas prices: 20 straight days (CNNMoney.com)

Comments

[Doug]

The SF Bay area blew through $4.00 many weeks ago. Try $4.09 for regular and $4.39 for premium.

[J]

You made your point.

But please keep in mind that you folks at Cali makes more dough than we do in other parts of the country.

[ziggy]

They may make more money but the cost of living on the left coast is a lot higher. 440 million gallons is only going to slow the increase. Supply and demand doesn't always control the market - sometimes speculation and fear play a bigger part. Not to mention that other coutries like China and India continue to use more.

[Red]

The United States is still the world's third largest oil producer. We can control our destiny on gasoline prices, if we want to. If everyone resolved to drive 3,000 fewer miles each year, by walking, combining errands or cutting down discretionary miles, we would see a sharp drop in gasoline prices. Same story if enough people switch from large vehicles to smaller ones. Reducing demand is the only way to bring down prices. It worked before in the early 1980s and it can again, despite new demand from India and China.

[Jack]

Gas will continue to climb in price so get used to it. CapGemini did a study that basically said we could realistically expect gas to rise to the mid 6's in the next 30 months. It's a myth that if we reduce our consumption prices will fall as both China and India purchase all excess supply on the open market. Currently the Chinese government subsidizes gas so it only costs $2.27 a gallon.

High gas prices are only priming you for high electric rates. This is what happens when politicians prevent drilling and nuclear deployment. Drilling is good for Cuba and nuclear deployment is good for France but our politicians know better. Then again politicians on average make $175,000 salary for barely 8 months work so they are not bashful when it comes to screwing the American public.

[J]

With people driving the way they are now, they deserve the torture.

This happens every single day. They can't stand how I accelerate and have to cut right in front of me to make the right turn 1 block down the road. Bunch of dumb thugs.

[Red]

Bravo for you J, for trying to save fuel in the way you drive. We need more like you on the roads, and fewer of the sad sacks and defeatists who think there's nothing that can be done about rising fuel prices. At least some Americans are taking action - by driving fewer miles for the first time in decades. USA Today published a story yesterday that said fuel prices may have already peaked for the year. If people continue to drive fewer miles, we'll see prices head downward, and any move in that direction is a good thing.

[J]

Driving fewer miles makes little difference with the aggressive driving behavior I see every single day I am on the road.

I often ask: Is it fun to accelerate just to decelerate? What's the point of speeding up to stop at the RED light? Is there a third mode other than full throttle and full braking?

[Doug]

Check my earlier comment on Cali fuel prices... paid 4.29 for regular and 4.59 for premium this weekend. Thanks to Hewlett-Packard for letting my wife work 100% time from home office -- saves us $500/mo in after tax fuel costs.

Another thing I've noticed that in LA the constant drone of copers and the hourly shineing by the night sun at night has stopped.
Less roar from the freeways too at night.