U.S. drivers won’t cut back on gas

Even at $3 a gallon, Americans unlikely to seriously cut down on gasoline consumption.

NEW YORK (Reuters) – U.S. drivers may take baby steps to reduce the amount of gasoline they burn, but long commutes and inefficient vehicles mean consumers could be locked into high fuel demand despite rocketing prices, experts said.

Gasoline prices hit a record $2.68 a gallon on Thursday, according to travel club AAA. But experts said prices would have to go far higher to substantially cut demand.
“It takes just enormous price increases of gasoline to launch demand destruction,” said Phil Verleger, an independent oil consultant.

Even though prices have spiked as high as $5 a gallon in some locations, Verleger said, costs over the entire United States would probably have to average between $5 to $10 a gallon to trim gasoline demand by even 5 percent.

Reuters