Why has gasoline demand fallen?

naterprius · 10-24-2005, 04:20 PM

What do you think? There is a sudden drop in gasoline demand, almost 3% down from same time last year. Why do you think that is? It's quite strange, as the fleet MPG for the US is essentially static.

**Tideland Prius** · 10-24-2005, 04:23 PM

What happened to All Of The Above? haha.

Not sure actually. Fuel prices dropped from $1.20/litre to 97.9¢/litre. I think No.1 has potential. Quite a number of people here on PriusChat have traded their gas guzzling vehicles (I'm talking of extreme here) but even then, I'm not sure if that's a large enough scale to reduce the consumption. It probably has to be a combination of things. Not one of those things above is capable of reducing demand on its own.

Wayne · 10-24-2005, 04:30 PM

I'd vote because the cost has skyrocketed, but I don't see that as an option...

naterprius · 10-24-2005, 10:05 PM

People don't buy less because the cost has skyrocketed. You don't just go to the gas station and buy only half a tank! (You could, but that doesn't reduce your consumption).

Unless you are saying that everyone is riding around on "E"? That wouldn't work for more than a few days...

You are right, a combination of things could explain the dip, but it was sudden and drastic.

Also, for every SUV traded in, somebody buys it. Unless of course it's just sitting on the dealer's lot! Maybe the new buyer doesn't go as far as the old owner?

Nate

sanguis · 10-24-2005, 10:21 PM

Quote:

Originally posted by naterprius@Oct 24 2005, 04:20 PM
What do you think? There is a sudden drop in gasoline demand, almost 3% down from same time last year. Why do you think that is? It's quite strange, as the fleet MPG for the US is essentially static.

[snapback]144962[/snapback]

People were stockpiling gas as the prices went up, further increasing demand and prices; now the markets bottomed, they are using those reserves and demand looks lower.

Wayne · 10-24-2005, 10:29 PM

Quote:

Originally posted by naterprius@Oct 24 2005, 10:05 PM
People don't buy less because the cost has skyrocketed.
[snapback]145107[/snapback]

Sure they do. They may still fill up, but they may forgo optional trips...

You do have a "Staying home whenever possible (no road trips)" option, so I'll go for that. I still think cost is the root cause, and wouldn't mind having that option. But this one will do!

DaveinOlyWA · 10-24-2005, 10:34 PM

i have noticed what has appeared to be a slight reduction in the number of aggresive drivers... actually i have noticed more people in large vehicles driving very conservatively... some even more so than the strictest PriusChat pulser.

i cant imagine people willing to switch their primary cars because of their commute distance, and i also think that part of it has to do with the fact that the number of hybrids on the road have actually made more of a dent then most think... (ya well... a little wishful, but what percentage would be saved by each hybrid times the amount that are on the road which is close to double last years total)

Spartan · 10-24-2005, 10:48 PM

Quote:

Originally posted by naterprius@Oct 24 2005, 04:20 PM
What do you think? There is a sudden drop in gasoline demand, almost 3% down from same time last year. Why do you think that is? It's quite strange, as the fleet MPG for the US is essentially static.

[snapback]144962[/snapback]

When 3+ dollar gas reduces the average American's disposable income it is enough motivation to cut back on unecessary trips, use public transportation when possible tellecommute more often and replace the gas guzzler. This was meant to happen. The sudden increase post Katrina raised the awareness level of the average person and start cutting back on consumption.

If however gas drops back to pre Katrina levels a lot of people wll forget about conserving again. The average person has very short memory span.

Also if the gas prices do not drop we might enter a recession in the American economy sooner that we may have thought. The sudden high energy prices and infaltion will affect every aspect of the economy and can hault growth.

sanguis · 10-24-2005, 10:48 PM

Quote:

Originally posted by DaveinOlyWA@Oct 24 2005, 10:34 PM
i have noticed what has appeared to be a slight reduction in the number of aggresive drivers... actually i have noticed more people in large vehicles driving very conservatively... some even more so than the strictest PriusChat pulser.

[snapback]145123[/snapback]

haha i had a HUMMER blow by me going ~90 on the way home. all i could do was chuckle at the driver's poor mpg as it passed

Panther87 · 10-24-2005, 11:27 PM

It is not surprising that gas usage is down now. 1) summer is over, so families not on vacation. 2) Hurricanes-- even though alot of gas is used in the evacuations and returns. There are at least a few days of no activity in the hurricane area. 3) Higher gas prices-- people cut back on travels, now are somewhat used to the change. People tend to be creatures of habit, or adaptive, whichever you prefer. 4) New Orleans is pretty much gone. You lose a city of that size, the impact will be felt. Remember, many people were, and still might be, in shelters. Just a few thoughts on the subject.

View Poll Results: Why do you think gasoline demand has suddenly fallen?
Many buyers quickly traded in for a more efficient ride.	3	5.45%
Carpooling.	2	3.64%
Use of public transportation.	2	3.64%
Staying home whenever possible (no road trips).	27	49.09%
Moved closer to work/ changed jobs closer to home.	0	0%
Stopped driving aggressively.	3	5.45%
Bicycles.	1	1.82%
Motorcycles.	1	1.82%
In two car families, the longer commuter has opted for the more efficient of the two vehicles.	7	12.73%
Hurricane devastation so vast that those people don't drive to a job every day.	9	16.36%
Voters: 55. You may not vote on this poll

10-24-2005, 10:34 PM	#7
DaveinOlyWA Opps !! I Did it Again!! Join Date: Apr 2004 Location: South Puget Sound, WA Posts: 9,661 My Car: 2006 Prius Package: #4 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 5	i have noticed what has appeared to be a slight reduction in the number of aggresive drivers... actually i have noticed more people in large vehicles driving very conservatively... some even more so than the strictest PriusChat pulser. i cant imagine people willing to switch their primary cars because of their commute distance, and i also think that part of it has to do with the fact that the number of hybrids on the road have actually made more of a dent then most think... (ya well... a little wishful, but what percentage would be saved by each hybrid times the amount that are on the road which is close to double last years total) __________________ My 2006: Last tank 463.1 miles @49.2 pump (49.4 computer) 4.22 cpm winter mpg 50.70 summer mpg 54.59 lifetime: 33,038.3 miles 52.79 mpg pump (54.04 mpg computer) 5.74 cpm My 2007 Zenn Driven 5945 miles, 2.01 cpm/ 105 mpg (at $2.05/gal), 4.04 miles/ Kwh Savings over my Prius $302.66 The Corolla...573.26 The REAL SAVINGS from not driving Corolla 657.39 +Prius= 958.18 (excludes maintenance costs...would be unfair to ICE vehicles) My Plate: DUALPWR (Dual Power)

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10-24-2005, 04:20 PM	#1
naterprius Senior Member Join Date: Mar 2004 Location: USA Posts: 1,830 My Car: Other Non-Hybrid Package: N/A Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	What do you think? There is a sudden drop in gasoline demand, almost 3% down from same time last year. Why do you think that is? It's quite strange, as the fleet MPG for the US is essentially static.

10-24-2005, 04:23 PM	#2
Tideland Prius Super Moderator Join Date: Oct 2004 Location: Canada Posts: 13,905 My Car: 2005 Prius Package: B Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 11	What happened to All Of The Above? haha. Not sure actually. Fuel prices dropped from $1.20/litre to 97.9¢/litre. I think No.1 has potential. Quite a number of people here on PriusChat have traded their gas guzzling vehicles (I'm talking of extreme here) but even then, I'm not sure if that's a large enough scale to reduce the consumption. It probably has to be a combination of things. Not one of those things above is capable of reducing demand on its own.

10-24-2005, 04:30 PM	#3
Wayne Senior Member Join Date: Aug 2005 Location: Fort Wayne, IN Posts: 676 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I'd vote because the cost has skyrocketed, but I don't see that as an option...

10-24-2005, 10:05 PM	#4
naterprius Senior Member Join Date: Mar 2004 Location: USA Posts: 1,830 My Car: Other Non-Hybrid Package: N/A Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	People don't buy less because the cost has skyrocketed. You don't just go to the gas station and buy only half a tank! (You could, but that doesn't reduce your consumption). Unless you are saying that everyone is riding around on "E"? That wouldn't work for more than a few days... You are right, a combination of things could explain the dip, but it was sudden and drastic. Also, for every SUV traded in, somebody buys it. Unless of course it's just sitting on the dealer's lot! Maybe the new buyer doesn't go as far as the old owner? Nate

10-24-2005, 11:27 PM	#10
Panther87 Join Date: May 2005 Location: S.E. South Dakota Posts: 80 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	It is not surprising that gas usage is down now. 1) summer is over, so families not on vacation. 2) Hurricanes-- even though alot of gas is used in the evacuations and returns. There are at least a few days of no activity in the hurricane area. 3) Higher gas prices-- people cut back on travels, now are somewhat used to the change. People tend to be creatures of habit, or adaptive, whichever you prefer. 4) New Orleans is pretty much gone. You lose a city of that size, the impact will be felt. Remember, many people were, and still might be, in shelters. Just a few thoughts on the subject.