U.S. gasoline demand drops despite lower prices

NEW YORK (Reuters) – Retail gasoline demand in the world’s largest consuming nation fell 2.5 percent in the week ended December 12 even as prices at the pumps dropped more than a dime, according to a MasterCard SpendingPulse report released Tuesday.

Gasoline demand averaged 9.098 million barrels per day during the week, down 2.5 percent from the previous week and down 5.4 percent from the same week a year ago, according to the weekly report.

The decline in consumption came even as pump prices fell 11 cents to average $1.67 a gallon, according to the report.

U.S. fuel demand has declined in recent months despite falling energy prices as a financial crisis stemming from the soured housing market squeezed consumer spending and confidence.

Reuters