High Gas Prices Hit Demand as Drivers Cut Back at the Pump
American drivers are starting to buy less gasoline as they feel the economic burden of record prices that continue to hover near $5 a gallon.
In the first full week of June, gasoline sales at U.S. stations were down about 8.2% compared with the same week last year..
the 14th consecutive week that sales have lagged behind 2021 levels, according to surveys by energy-data provider OPIS.
In the week ended June 10, the Energy Information Administration’s measure of implied demand—an estimate of products supplied to consumers..
declined by roughly 110,000 barrels a day from the prior week, to about 9.1 million barrels a day. That figure is down from about 9.4 million barrels a day the same time last year.
Drivers have begun consolidating trips or filling up their tanks with only as much fuel as they need to get by for a few days.
Some are carpooling or taking mass transit, while others are working from the office for fewer days each week, analysts said.
Gasoline demand isn’t just trailing last year. The EIA’s estimate for implied demand for months has declined compared with the average for 2017 to 2019, sliding from 99% of that average in late February to 93% by late May, and to 95% in June.