Gas Price Drop Does Not Spark Usage Increase

by jordan | October 15, 2008 at 05:51 am

1043 views | 32 Recommendations | 23 comments

As gas prices made their biggest drop ever due to dipping demand, analysts are wondering if, now with petrol prices lower, drivers will be filling up more.

"The bottom is falling out of them," said John Townsend, a spokesman for the auto club. He added, "The big question on the table is: With prices falling, will people begin driving more?"

So far, there is little sign of that.

Prices may have dropped, but they're by no means low: they may have fallen thrity-five cents in the past few weeks, but those same prices had doubled during the past year, so SUV owners (for example) are still not positioned for that Great American Road Trip.

Fuel companies were wondering at which point overcharging becomes unbearable to the consumer... well, they found it. Prices will continue to trickle downward until usage rises, and there shall fuel prices remain. The overall economic turmoil certainly doesn't help, but fuel companies the world over have amassed fortunes based on the simple formula of charging the maximum of what the market will bear.

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Rhonda J Mangus

flagged this story as Good Stuff

at 06:04 on October 15th, 2008

jordan, I like this story. It's good stuff. That's right, "Prices may have dropped, but they're by no means low:..." The least expensive is at $3.35 per gallon (yesterday) at the "reservation" -- add approximately $.17-.20 per gallon to purchases made at pumps operated off the reservation in New York State.

Edmund Jenks

flagged this story as Good Stuff

at 06:13 on October 15th, 2008

jordan, I like this story. It's good stuff.

This post is now the Top Story in Motorsports & Automotive Culture News.

Please TAG post with 'motorsports'.

René

flagged this story as Good Stuff

at 06:31 on October 15th, 2008

It's still way too high. Lowest here was $3.09 two days ago in New Orleans and finally the Westbank.

fourbyfourblazer

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at 07:09 on October 15th, 2008

jordan, I like this story. It's good stuff.

I've certain chosen to drive less as a result of the sky rocketing prices. As prices get lower we may see prices of food drop and other things that require transportation if greed hasn/t already set in.

Christopher Byrne

at 07:10 on October 15th, 2008

With the gasoline prices only coming down very recently, it is very hard for anyone to gauge if and when usage patterns will change.

Georgia, which has some of the lowest gas taxes in the country has been the 3rd most expensive in the country of recent. When i was in NH and Taxachusetts a couple of weeks ago, i was blown away that the gas was 50 cents cheaper.

@Rene - define high? Our prices are cheap compared to many other countries.

RayBanBro66

flagged this story as Good Stuff

at 13:22 on October 15th, 2008

jordan, I like this story. It's good stuff. I know I have personally changed my driving habits because of the ridiculous price of gas..... and I will CONTINUE my modified driving habits now until gas drops back down to under $2 gallon. (guess I better prepare to keep doing what I'm doing since we'll probably never see $1.9x gallon) LOL

Ahleha

at 20:15 on October 15th, 2008

This was one of the few gas stations in Belize where in September 2008 the price per gallon was over $5.00.

Here in the states I am very careful with my driving habits even as gas is down a dollar to 3.28. My feelings of insecurity with the current economy makes me think I need to cut back on everything as we don't know where the market is going.

Ahleha has contributed a photo to this story.

simplysax

at 22:13 on October 15th, 2008

simplysax has contributed a photo to this story.

Striae

at 22:24 on October 15th, 2008

This photo was taken while traveling through Europe. American really need to learn to travel more like these people... Smart cars, scooters, motorcycles, public transportation... These SMART cars were on their way to a dealer somewhere in Italy....

Striae has contributed a photo to this story.

Bruce Sutherland

at 01:25 on October 16th, 2008

After breaking into Triple figures slowly prices are falling back towards doube digits. However the petrol stations are still quite quiet.

Bruce Sutherland has contributed a photo to this story.

♥ Bubble ♥

at 02:56 on October 16th, 2008

redlioness

at 05:30 on October 16th, 2008

This photo was taken several years ago on one of our trips to Washington state. Beautiful, original native american art was everywhere, even guarding the entrance to this gas station in Pt. Angeles. It was a world set apart.

redlioness has contributed a photo to this story.

Christopher Byrne

at 05:51 on October 16th, 2008

What does this picture have to do with the story? Photos should complement the story by adding value, not just added because it is "interesting".

Roseprincesse

at 09:13 on October 16th, 2008

Old gas station in New Hampshire, near the oldest store of the country...

Roseprincesse has contributed a photo to this story.

Roseprincesse

at 09:17 on October 16th, 2008

This summer we did a tour in the States and we discovered this old gas station, in New Hampshire near a covered bridge & the oldest drugstore of the country..

Babel-Fish

at 15:54 on October 17th, 2008

The finacial crisis at the stock exchange have more to do with the drop in oil prices than demand for oil but the demand for oil will see the prices going down gradually and not by the sudden drop shown at the time of the mini stock market collapse. OPEC seemingly are worried and have a meeting today I think they are going to try to freeze prices at the present level, greedy for profit and thats the stutus quo

locomotives

at 20:52 on October 18th, 2008

a gas station at night in Dos Palos, California

locomotives has contributed a photo to this story.

the_trip

at 12:17 on October 19th, 2008

the_trip has contributed a photo to this story.

René

at 20:42 on November 3rd, 2008

Saw gas posted at $2.08 on the WestBank, New Orleans, Mon, Nov. 3. That's still too high, and they're just playing us, trying to get us not to drill, not to invent, not to develop alternate fuels, etc.

If you don't think that is high, just remember it was below $2.00 before the speculators started manipulating the price.

alinajean13

at 15:31 on November 7th, 2008

Old Gas Station, Maine

alinajean13 has contributed a photo to this story.

clmarti1

at 18:30 on November 7th, 2008

1.99 in Orlando today. Great story... I can't help but wonder why the prices suddenly dropped right before a new President was taking office???

corbinse

at 20:54 on November 8th, 2008

Great story.. am in a sector of the "automotive industry" Don't ask has someting to do with white shoes and a white belt.. inside joke "used car s...." but the dropping prices I have heard 1.95$ in Co. down from almost $4 has made an impact on our business. People are out more ..

politisite

at 08:43 on November 12th, 2008

Jordan, Just like in the 70s in America, there was lots of talk about alternative sources of energy. I even remember the cheeze wedge cars. When the price goes down, seems like we forget that we need to get off of Foreign oil. Because of my illness, I don't drive much. Now it cost 30 dollars to fill my car. A couple of months ago it was 60 dollars. Gas is now 1.99 a gallon here in South Carolina