That Tipping Point For Gasoline Demand May Have Arrived

Business.

Soaring fuel prices got you down? something can be done about it - american car owners are showing the world that there is a limit to their consumerism - when consumerism runs up against financial reality they will consume less! When we are talking about a decrease in Gasoline consumption it is in the range of half a percentage point. This amazing discovery is attributable to the skyrocketing fuel prices and the decrease in demand for fuel in America at the present time.

That may not sound like much, but it would be the first time since 1991 that there' s been a decline in annual Gasoline consumption. - the federal government noted that the decline was occurring in part because of a slowing economy. And this is something that has happened a total of only SEVEN times since 1951! But it also said that higher Gasoline prices were having an effect on demand. "Sustained higher Gasoline prices are beginning to show up in lower Gasoline consumption, " said Tancred Lidderdale, an analyst for the Energy Information Administration. Although higher Gasoline prices were expected to have an effect on demand, it wasn' t clear just how high they would have to go to do so. Both Gasoline and diesel prices are now at record levels. Many market watchers believed prices would have to stay above$ 3 per gallon for several months or even a year.

Mike Right, a spokesman for AAA Club of Missouri, said that a decline in Gasoline usage shouldn' t come as much of a surprise. - that tipping point for gasoline demand may have arrived. A survey conducted in January by AAA found that many motorists were already deciding to change vacation plans for this summer by planning for shorter trips. "We are starting to see some signs of that, " he said. S. dropped 9 percent compared with the same month a year earlier. There are indications that a fundamental shift in consumer driving habits may have started in December, when total miles traveled in the U. Miles traveled in the Midwest were down 8 percent. The government today plans to release a proposal to raise Gasoline efficiency standards for new cars and trucks, putting the nation' s fleet on track to reach 35 miles per gallon by 202 At the present time, newly manufactured vehicles in America are required to maintain at least a 25 MPG average and SUVs, trucks and vans are required to measure up to a 25 MPG minimum average.

There is already a shift in demand from Gasoline guzzline SUVs towards higher MPG vehicles. - congressional democratic leaders are expecting that, in today' s dollars, these new gasoline economy standards will save the average driver somewhere around$ 1000/ year. The increase in the use nationwide of busses, etc last year was 4% and this year it is already 9% . Meanwhile, other drivers are turning to public transportation. A decline in Gasoline demand could help give some relief from high prices. So all of this zeroes in on one fundamental question. Although prices are surging as the traditional summer driving season approaches, some market followers expect prices to ease back later this summer.

Will people have to all start driving Subarus, bicycles and taking the bus or be forced to stay at home because of soaring Gasoline prices or is there some other solution? - there sure is and it is called water4gas