U.S. Fuel Use Drops Most in 17 Years in 1st Half 2008, API Says

(Bloomberg) — U.S. fuel consumption fell 3 percent in the first half of 2008, the biggest decline for the period in 17 years, as high prices and a slowing economy curbed demand, an oil industry report today showed.

Deliveries of petroleum products declined to an average 20.08 million barrels a day through June, American Petroleum Institute said in a monthly report. Gasoline deliveries fell 1.7 percent, the first “significant” decline in 17 years.


Fuel demand fell as prices for crude oil, gasoline and heating oil futures reached records. The higher prices helped send the U.S. economy to its weakest six-months of growth in five years, according to the Commerce Department. Oil has averaged $100.10 a barrel in the past 12 months, up 58 percent from a year earlier, and reached a record $147.27 on July 11.

“Higher pump prices and a slowing economy were undoubtedly factors” in the slowdown in fuel demand, Ron Planting, an analyst with the Washington-based institute who helped prepare the report, said in a release. “At 20.08 million barrels per day, total demand was the lowest in three years.”

Bloomberg