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Drivers cut back as gas prices rise

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POSTED: April 14, 2011 11:05 a.m.

Soaring gas prices are starting to take a toll on American drivers.
Across the country, people are pumping less into the tank, reversing what had been a steady increase in demand for fuel. For five weeks in a row, they have bought less gas than they did a year ago.
Drivers bought about 2.4 million fewer gallons for the week of April 1, a 3.6 percent drop from last year, according to MasterCard SpendingPulse, which tracks the volume of gas sold at 140,000 service stations nationwide.
The last time Americans cut back so much was in December, when snowstorms forced people to stay home.
Before the decline, demand was increasing for two months. Some analysts had expected the trend to continue because the economic recovery was picking up, adding 216,000 jobs in March.
“More people are going to work,” said John Gamel, director of gasoline research for MasterCard. “That means more people are driving and they should be buying more gas.”
Instead, about 70 percent of the nation’s major gas-station chains say sales have fallen, according to a March survey by the Oil Price Information Service.
More than half reported a drop of 3 percent or more – the sharpest since the summer of 2008, when gas soared past $4 a gallon.
Now it’s creeping toward $4 again.

 

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