There are increasing signs that US motorists are changing their driving habits in the face of record prices at the fuel pumps. Posted on 04/09/2005 9:23:32 AM PDT by traumer
There are increasing signs that US motorists are changing their driving habits in the face of record prices at the fuel pumps.
While the US love affair with the motor car is far from over, consumer dismay has greeted the latest predictions that the average price of petrol will hit $2.35-a-gallon during the peak summer driving season.
That is cheap fuel by European standards, but represents a substantial spike in the US, where motorists were paying some 40 cents less last summer. Sales of gas-hungry sport utility vehicles and pick-ups are stalling, while drivers are taking drastic steps to cut down on expenses.
Brad Proctor, founder of Gaspricewatch.com reports a surge in price spotters for the site, which records prices at 128,000 gas stations to help consumers. "We are a nation that drives a lot. When prices go up by 25 cents in 30 days, it hits business and consumers hard."
'Changes in driving'
The price spike is fuelled by the rising cost of crude oil, which makes up about half the cost of retail petrol in the US.
I am a cabbie who does 120 miles a day - I'm not taking long fares as I lose out on the return trip - Daryl Smith
"Taxi firms and pizza deliveries are now charging surcharges to cover gas costs," said Proctor. "We are seeing changes in the way people are driving, what cars they are using. Families are leaving the big, gas-guzzling SUV at home and taking their second car for short trips."
Jay McIntosh, director of retail and consumer products at Ernst & Young, said "lower income earners" were most vulnerable. "In the longer term I think we'll see some inflationary pricing at retail on many imported items like clothing and household goods," he told the BBC.
AT THE PUMPS Highest gas price in the US is $2.99 per gallon, in San Francisco, California Lowest is $1.96 in Evanston, Wyoming UK drivers pay equivalent of $6.10 per gallon Source: Gaspricewatch.com
A majority of Americans say gas prices are causing financial hardship, according to a recent CNN/USA Today poll of 1,040 adults.
Fifteen percent of respondents said the price of gas was causing them "serious hardship" jeopardising their standard of living, while 43% described "moderate hardship".
Forty-eight percent said gas prices had caused them to cut back on their driving.
But demand grows
Despite high prices, demand is expected to continue to rise due in part to the increasing number of drivers and vehicles on the roads. The US Energy Information Administration says demand this summer will rise 1.8% from last summer, helping push pump prices to a peak average of $2.35 a gallon in May.
Lynn Franco, head of consumer research at The Conference Board, warned: "If we have several months of significantly higher prices then that is when we could see a marked impact in terms of consumer confidence."
For those on tight margins, the solution is to drive less.
Washington DC cabbie Daryl Smith said: "I'm not taking long fares as I lose out on the return trip. "In fact, I'm not cruising for fares now - I'm parking in the good spots."
--you can send all the messages you want to the oil companies and it won't drill a single well or build one refinery. Believe me, the oil companies already know what it costs---and who is standing in the way---
!!! ROFL!!!!!
Around here the price of milk is the same at the mini mart as it is in the supermarket. Heck beer is cheaper than milk in some stores!!!
But we also need to send a coordinated message also to members of the Congress who are supported by the oil companies.
that's probably because most people don't put 70L of coffee into their car each week
plus demand for coffee is more elastic... you can get by without coffee
"I agree, environmentalists and NIBYists are TRAITORS who should be shipped off to Git'mo."
Cool! I'm going to build a refinery right next door to you and use absolutely no polution control technology on the thing. And if you make even a peep that could be construed as NIMBY-ist, then it's off to Gitmo. And don't even ask for any compensation for reducing the value of your land to zilch (actually less than zilch since you'll still owe taxes on it).
I think you fail to realize that the sane environmental laws in this country (and yes, some of them are sane) are designed to protect property owners from damage to their property. Or should we just trash all property rights?
"No, but during WWII American industries were TOLD what to do and WHO they could sell to. This is a national emergency and we're at war."
Really? I would think a Congressional declaration of war would have made the news.
"Its any American companies PATRIOTIC DUTY to sell to their fellow citizens at a discount."
Corporations and their officers don't have patriotic duties, they have fiduciary duties to shareholders. Unless the USA suddenly turned into the USSR ...
"To hell with the world. This is what happens when we sign crap like GATT, NAFTA, FTAA, and we get in to the WTO."
Oh, you ARE anti-capitalist!
It didn't blow up.
It caught fire.
So does gasoline.
You might consider writing your elected representatives and urging passage of the energy bill, if you think it could help.
Enviromentalists DO hold this nation hostage on many fronts. Perhaps the current rise in fuel prices will serve as a wake-up call and provide the leverage needed to initiate many of the programs(nuclear, more drilling, etc etc) the rest of us advocate.
Breaking eggs to make omellets come to mind...
Nobody needs to buy coffee regularly 20 gallons at a time...
I can't believe anyone would pay $5 for a cup of coffee.
"1/4 mile: 17.2 sec"
That snail shouldn't be allowed on any road!
"my weekly milk bill is nearly double the weekly gasoline bill."
You must use all your gas in a weed eater!
My weekly gas bill is now about $120 and I only drink 3 gallons of milk a week!
"Cool! I'm going to build a refinery right next door to you and use absolutely no polution control technology on the thing."
Please do!!!!!
The only problem is you will have to kill every eniro in California first.
I welcome both options!
Red Tape.
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