Recent reports on gasoline consumption indicated that as gasoline prices have risen, demand has not slowed down. High gasoline prices have affected not only consumers' pockets but also the US automobile industry.
When people find out that my job entails tracking US gasoline prices, they often ask, "Why are gasoline prices so high?" and "Are they going to continue to rise?" Many accept the explanations, but they still like to criticize oil companies for the high gasoline prices. This topic is much like talking about the weather; people just like to converse and voice their opinions. As much as they detest the high gasoline prices, consumers continue to dip into their pocketbooks and continue with their normal driving habits.
Vehicle changes
In 1990, the industry introduced what would soon become one of the hottest vehicles on the market, the sports utility vehicle (SUV). Many baby boomers, who typically start purchasing trends, found that the SUV could meet their different types of needs like adventure trips and picking up the kids. The SUV's popularity skyrocketed. Adding to popularity of the vehicles were favorable financing options and rising disposable incomes. Gasoline prices were not a worry to most consumers who could afford and drive SUVs.
Changing habits
Americans like the independence provided by personal vehicles, which they are far from ready to abandon. Most of them are making room in their budgets to continue driving the way they want and need despite high gasoline prices.
If gasoline prices continue to rise, however, many can be expected to begin to carpool, use alternative transportation, or manage schedules to cut time spent driving. The question mentioned earlier about how high gasoline prices go will be determined largely by adjustments such as these. Small changes in many personal routines, coupled with big changes already evident in vehicle preference, can make a dramatic difference in the age of high gasoline prices.
--Excerpt from Laura Bell, Oil and Gas Journal 21.5.2007
Gary Fumeaux is a leading cost-cutting specialist with over 7 years experience in helping businesses and the public with huge cost savings. For more gas tips and ways to cut what you spend at the petrol pump, visit www.cheap-gas-now.com
