As gas prices climbed to record highs in early March, Americans used less gasoline. That may sound obvious. It’s significant because experts say the conditions driving prices to record highs this month are unlikely to change anytime soon. The only way to bring prices down is to buy less gasoline. Americans are buying less gasoline.
The data comes from the U.S. Energy Information Administration (EIA). The agency tracks America’s energy consumption and publishes data after a lag of a little more than a week.
The EIA’s most recent figures show that, in the week ending March 11, Americans used about 8.944 million barrels of gasoline per day. The week before, we’d used 8.962. The drop seems small, but it comes at a time of year when consumption is typically rising.
Little Governments Can Do
Since Russia’s invasion of neighboring Ukraine kicked off the current surge in gas prices, experts have said that governments have limited tools with which to ease Americans’ pain at the pump. The federal government has released 30 million barrels of oil from the U.S. Strategic Petroleum Reserve and convinced allies to do the same.
But the country burns about 15 to 20 million barrels of oil most days (including not just gasoline, but heating oil, jet fuel, and other sources). So that additional supply was gone almost as fast as it could reach market.
Some states have begun pausing gas taxes, which causes an almost immediate drop at the pump. But gas tax holidays have limited use as a long-term solution since gas taxes fund road repairs in most states. As roads fall into disrepair, Americans burn more gas idling in traffic.
So, economists say, the only way to reduce the cost of gasoline is through simple supply and demand. As drivers demand less, supply rises, and prices fall.
Survey: $4 Gas is Most Drivers’ Red Line
Data from AAA says that most drivers will demand less once gas reaches $4 per gallon. According to AAA, the average price of a gallon of gas nationwide stands at $4.24 today. Californians are paying the highest prices. A gallon averages $5.87 today in the Golden State.
In a recent survey, 59% of drivers told AAA they “would make changes to their driving habits or lifestyle” if prices crested $4 per gallon.
Eighty percent said they would opt to drive less. Most would change their day-to-day lives, such as combining trips or carpooling. Fewer would reconsider vacation plans.
AAA surveyed a sample of U.S. adults, not just its own members, to get the results.
