As gas prices increase, consumption decreases

As gas prices increase, consumption decreases

Have you noticed that there are fewer cars on the road lately? Recent trends seem to point in that direction. According to the Energy Information Administration (EIA), U.S. gasoline consumption has been declining for at least six months. In the first quarter of 2008 fuel demand was 1.4 percent below last year?s levels and it?s the third straight quarter of declines according to the American Petroleum Institute.

The EIA projects that for 2008, gasoline consumption is expected to decline by 0.3 percent. In particular, the summer (April through September) is expected to show a 0.4-percent decrease from last year. If you?re planning on hitting the road this summer, be prepared for sticker shock as regular retail gas prices are predicted to average $3.54 a gallon (up from $2.93 last summer) with some areas crossing $4.00.

With summer beyond the traditional time for road trips, it is no surprise that elevated fuel prices has lead to ?staycations??money-saving, stay-at-home vacations.

Another sign that people are changing their driving habits is the increase of public transportation use, which rose to its highest level in 50 years?10.3 billion trips in 2007, up 2.1 percent over the previous year. Americans are looking into alternative modes of transportation such as trolleys, trains, subways, and buses, which all showed a ridership increase, with the largest growth in major cities.

These fuel-consumption indicators are not surprising considering the rise in gas prices and slowing economy.

What steps have you taken, if any, to decrease your fuel consumption? Post your answers in the comments below.

To see what gas prices are in your area, see our average gas prices, which is updated weekly. Also, read our fuel saving tips and learn about alternative fuels in the Consumer Reports Guide to Driving Green.

?Liza Barth

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