Rising gas prices do little to dent driving habits

[peejay 327]

Rising gas prices do little to dent driving habits

Report shows fuel consumption is actually higher now than last year

By BRETT CLANTON

2007 Houston Chronicle

Rising gas prices As gas prices once again inch toward $3 a gallon, U.S. motorists are reacting with everything from indifference to outrage. But on the whole, they don't appear to be driving any less.

In fact, despite a 10-week run-up in pump prices, Americans continue using more gasoline this year than they did in 2006, according to a Department of Energy report last week.

The same is true in Texas, where fuel consumption rose in the first three months of the year right along with gas prices, according to state motor fuel tax collection data.

The trend suggests Americans may be getting used to paying more for a gallon of gasoline than they did a few years ago. But if prices top the $3 mark nationwide — as they already have in California and several other Western states — U.S. consumers may start to consider adjustments in their routines, analysts said.

"It appears like that $3 threshold gets people's attention," said Paul Weissgarber, head of management consulting firm AT Kearney's North American energy practice in Dallas.

The recent uptick is the result of a combination of factors, said John Felmy, chief economist at the American Petroleum Institute, an industry trade group in Washington, D.C.

Scheduled and unplanned refinery shutdowns coupled with reduced gasoline imports have tightened supplies, rising crude oil prices and higher costs of ethanol used in gas blending have put upward pressure on gasoline-making costs, and consumer demand is growing ahead of the busy summer driving season, he said.

An 'overreaction'

Whether gas prices nationwide keep increasing or settle down will depend chiefly on the price of crude, which accounts for about half the cost of a gallon of gasoline, he said. But it's "really going to be a function of all those factors that got us here," he said.

Tom Kloza, analyst with the Oil Price Information Service in Wall, N.J., said there has been some "overreaction" to some of those factors.

"But the market has enough mojo, and enough catching up to do, to put $2.90 a gallon well within the target high," Kloza said in his blog Friday.

The last two times U.S. gas prices approached and surpassed $3 a gallon — after Hurricane Katrina in 2005 and last summer when crude prices hit an all-time high of $78 per barrel — demand growth for gasoline slowed, the Department of Energy said.

But because gasoline is a necessity for so many people it would take a "large increase in prices to significantly affect demand," the agency said.

And so far, Americans don't seem to view the latest price surge as falling into that category.

The Energy Department said its latest weekly data showed gasoline demand continuing to grow at a "strong clip." Demand for the four weeks ending April 6 was 2.5 percent higher than the same period a year ago and set a new record for the month of April.

Other factors

In Texas, collections of the 20-cent-per-gallon state gasoline tax in the first three months of 2007 were $553 million, up from $545 million in the same period a year ago, according to state comptroller's data. While the increase does reflect a rise in gas consumption, the comptroller's office said population growth and higher motor vehicle registrations could be factors in the gain.

Never mind that the average price of regular unleaded is within striking distance of its all-time national high — $3.05 a gallon, which AAA said was recorded on Sept. 5, 2005.

Americans just seem more conditioned — and maybe more resigned — to paying higher gas prices than they were in 2005 and 2006, said Judy Dugan, research director of the Web site www.oilwatchdog.org. The site is a project of the Foundation for Taxpayer and Consumer Rights, a consumer group based in Santa Monica, Calif.

"They feel they can't do anything about it, so they sigh. They have to dig deeper into their wallets. They have to give up things, but they have to buy the gas, so they do it," she said.

But late last week, Dylan Parker decided he had had enough of the quiet creep in gasoline prices. So the 37-year-old Meyerland resident made a sign that said "Honk if you think gas prices are too high" and parked himself on a busy stretch of North Braeswood.

"I just felt like people needed a voice," he said.

Parker said he plans to be out with his sign at least two times a week until prices go back down. With the busy summer driving season ahead and prices still drifting upward, that could be awhile.

http://www.chron.com/disp/story.mpl/business/4724667.html

[Robor007 0]

It hasn't affected my driving habits but I don't do much unnecessary anyway. My current car only gets about 23 MPG in the city and that's most of my driving (to and from work). I wish I got more MPG but it's not cost effective to sell mine and get a higher MPG car right now. However, when my current car is done I can say for certain my next car will have a city MPG that is 30+ MPG.

The high gas prices suck and it does hurt the budget but I wouldn't mind if they bumped up the gas tax and dumped the money into research for alternative fuels. A significant increase would deter unnecessary driving thus decreasing traffic and funding research to reduce our dependence on foreign oil.

[almaty 19]

I drive the same....places to go

[broma25 2]

Its difficult to drive less in the USA, people have to work and there is a distinct lack of public transport unless you are in the city....therefore driving is a necessity not a pleasure and people will continue to drive no matter what the price of gas

[tom&tata 2]

Its difficult to drive less in the USA, people have to work and there is a distinct lack of public transport unless you are in the city....therefore driving is a necessity not a pleasure and people will continue to drive no matter what the price of gas

True. Driving esp. in snow was definitely NO pleasure for me. But I have to go to work.

[Saddle Bronc 124]

Its difficult to drive less in the USA, people have to work and there is a distinct lack of public transport unless you are in the city....therefore driving is a necessity not a pleasure and people will continue to drive no matter what the price of gas

And even in the cities WITH public transport, large parts are not reachable that way.

[slim 1,533]

We will never drive less. Period.

We have installed drive-thru windows so we can get cheeseburgers faster, and more importantly, so we don't have to walk our fat @$$es anywhere we don't absolutely have to.

As long as there's a Wal-Mart and a McDonalds (and sometimes even a McDonalds in a Wal-Mart) Americans will continue to work long hours to pay for things they don't need and get fatter.

OPEC knows this. Yet we continue to deny it.

[eric&gen 0]

Too many big SUVS and pickup trucks with over sized tires raised hi are gas guzzlers is what causing the prices to go up lol.

[mawilson 2,133]

I love driving. I'd drive even if the price of gas hit $10 / gallon.

[Mr. Big Dog 10,747]

In light of this, I have no limbs and thus no choice but to drive.

[almaty 19]

I love driving. I'd drive even if the price of gas hit $10 / gallon.

amen brother...!

[ChristinaM 0]

We will never drive less. Period.

We have installed drive-thru windows so we can get cheeseburgers faster, and more importantly, so we don't have to walk our fat @$$es anywhere we don't absolutely have to.

As long as there's a Wal-Mart and a McDonalds (and sometimes even a McDonalds in a Wal-Mart) Americans will continue to work long hours to pay for things they don't need and get fatter.

OPEC knows this. Yet we continue to deny it.

I think that's a little unfair.

I can only talk for myself here, but I live in a suburb of a small city with inadequate public transport. Most of my driving is work-related. I'm in outside sales; it's not unusual for me to drive a few thousand miles in a month. Given that I live less than 5 miles from the office, that's highway miles. It's simply not practical for me to walk from my office in Portland to visit a client in Bangor; just as it's not practical for my husband to walk to work in NH. No matter what gas costs, we need to be able to get to and from work.

However, I can truthfully tell you that I have never driven my car through a drive-thru, but I have walked the two blocks to go get a real burger from a real eatery. I don't think I'm atypical; certainly not among the people I know. We drive because it is required to do so, not because we're too lazy to walk. When I move house this weekend I will be within walking distance of many more shops, which I will not need to drive to.

And quite frankly, what WalMart has to do with the price of fish is completely beyond me.

[mawilson 2,133]

However, I can truthfully tell you that I have never driven my car through a drive-thru

Sacrilege! No-one should be issued with a green card until they've done a drive-thru

[Dr_LHA 3]

However, I can truthfully tell you that I have never driven my car through a drive-thru

Sacrilege! No-one should be issued with a green card until they've done a drive-thru

Indeed, there's nothing wrong with the drive-thru, especially if it's a good one, e.g. In-and-Out Burger.

[Alex+R 0]

However, I can truthfully tell you that I have never driven my car through a drive-thru

Sacrilege! No-one should be issued with a green card until they've done a drive-thru

I just drove through for the first time in my life in February. Actually also in February we drove through Burger King in Memphis at 3 am, but I wasn't driving so not sure if it counts. However, Rey is assured a Green Card now that he's been through the drive-thru a grand total of 3 times.