Tuesday, April 04, 2006
Gas Prices Up Sharply Ahead of Peak Season
Gas Prices Up Sharply Ahead of Peak Season
By Steven Mufson
Washington Post Staff Writer
Tuesday, April 4, 2006; A01
High gasoline prices have had only a modest impact on the driving habits of American motorists, who have done relatively little to moderate their gasoline consumption. Ever since oil prices soared in September after Hurricane Katrina, gasoline consumption has been within 1.5 percent of the previous year -- some months lower, some months higher, according to figures from the U.S. Energy Information Administration. Gasoline deliveries in January, barely lower than a year earlier, ran 13.3 percent higher than January 1999, when crude oil prices were a fraction of current levels.
"People are wealthier, they've been enticed into buying homes further from work, and the auto industry has been enticing them into buying very inefficient vehicles," said Philip K. Verleger, an oil consultant. He estimates that it takes a 20 percent increase in price to trim consumption by 1 percent today while a 10 percent price increase in the 1970s would have an identical effect.
I am not sure I agree with the estimate in the last sentence above, but it's an interesting one anyway - I suppose we'll see what happens during the U.S. summer driving season to come. Of course, one thing that we are not seeing in the U.S. is long queues of people waiting their turn at the pump to fill up.
Amazing what (the lack of) government price regulations can do!
By Steven Mufson
Washington Post Staff Writer
Tuesday, April 4, 2006; A01
High gasoline prices have had only a modest impact on the driving habits of American motorists, who have done relatively little to moderate their gasoline consumption. Ever since oil prices soared in September after Hurricane Katrina, gasoline consumption has been within 1.5 percent of the previous year -- some months lower, some months higher, according to figures from the U.S. Energy Information Administration. Gasoline deliveries in January, barely lower than a year earlier, ran 13.3 percent higher than January 1999, when crude oil prices were a fraction of current levels.
"People are wealthier, they've been enticed into buying homes further from work, and the auto industry has been enticing them into buying very inefficient vehicles," said Philip K. Verleger, an oil consultant. He estimates that it takes a 20 percent increase in price to trim consumption by 1 percent today while a 10 percent price increase in the 1970s would have an identical effect.
I am not sure I agree with the estimate in the last sentence above, but it's an interesting one anyway - I suppose we'll see what happens during the U.S. summer driving season to come. Of course, one thing that we are not seeing in the U.S. is long queues of people waiting their turn at the pump to fill up.
Amazing what (the lack of) government price regulations can do!
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