Gas Prices Spur Drivers to Cut Use to Five-Year Low

As average gas prices hit a record high of $4.108 a gallon this week, the government released new data showing that drivers have cut back their use of the fuel to levels not seen in five years.

The average price of gasoline in the U.S. has been above $4 a regular gallon for more than a month, AAA reports, putting a dent in gasoline demand.


Even through the Fourth of July weekend — a time when Americans traditionally get on the road — gasoline consumption dropped 3.3% from last year to 9.347 million barrels a day, according to weekly data released by the federal Energy Information Administration. For the first week of July, that is the least drivers have used since 2003, when consumption was 9.05 million barrels a day.

Meanwhile, supplies of gasoline are building even as refiners produce fewer gallons of the fuel. Stocks of gasoline grew by almost one million barrels from the previous week, well above levels last year. Which means there will be plenty of gas available this summer, experts say. “There is no doubt there are no supply concerns for the next two months,” says Stephen Schork, president of the oil-and-gas-research firm Schork Group.

Wall St. Journal