Americans Starting to Cut Back on Driving as Gas Prices Rise

Don't want to call this writer naive but the following statements are easily explained. Since the cost of groceries and other items have risen because the cost to ship them to the stores is on the rise due to high gas prices for truckers, it makes sense that retail sales are up because items cost more. Why is that hard to figure out?

MasterCard's report shows drivers bought 2.7 billion gallons of gas last week, down 3.6 percent from the same period in 2010, when it was 80 cents cheaper.

The decline is somewhat puzzling because Americans typically curb their driving only as a last resort, after sacrificing other forms of discretionary spending, like shopping for new clothes, or going to movies, concerts and restaurants.

But demand for gas is falling while other types of spending are on the rise. Retail sales rose 2 percent in March compared with a year earlier, surprising economists who were expecting no increase or even a decline.

Then we have the drop in the amount of fuel that people are purchasing. I am one of those who now combines trips into one and doesn't get in the car at the drop of a hat to go get something. Even though I am buy fewer gallons, the price I am paying is way up. I buy 7-11 gas using their gift card to get 3 cents off a gallon. I can walk in the store and have them add to the card from my bankcard and walk back out and fill up my SUV. Then I always buy one of their Cokes for $.79 so all is not lost.

We live in one of the cheaper places for fuel but several of the stations who advertise 'no ethanol' are $.15 higher a gallon so now way am I stopping there. I am driving less and paying more a month for gas but I don't see a drop in people going out to eat as you usually have to wait in line to get a seat in the evening and sometimes in the morning. Lines at the BBQ places for lunch are pretty much the same.

Americans Starting to Cut Back on Driving as Gas Prices Rise
Chris Kahn, AP

Apr 11, 2011 – 2:47 PM

NEW YORK -- With the price of gas above $3.50 a gallon in all but one state, there are signs that Americans are cutting back on driving, reversing a steady increase in demand for fuel as the economy improves.

For five consecutive weeks, Americans have bought less gas than they did a year earlier, according to MasterCard Spending Pulse, which tracks the volume of gas sold at 140,000 service stations nationwide.

(snip)

Before the decline, demand was increasing for two months. Some analysts had expected the trend to continue because the economic recovery is 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.

This year, gas prices have shot up as unrest in North Africa and the Middle East rattled energy markets and increased global demand for crude oil squeezed supplies. A gallon of unleaded regular costs $3.77 on average, and only Wyoming has an average lower than $3.50. Gas is already 41 cents more expensive then at this point in 2008, when it peaked at $4.11 in July.

Excerpt: Read More at AOL News

Oklahoma gas prices would be cheaper if the places advertising 'no ethanol' are not so high. Even then our gas prices jumped almost $.20 cents last week but have now been the same for five days in a row.

Just remember Obama wants us all to be patient with the gas prices. He can take that quote and shove it. He doesn't have to meet a budget as he spends our tax dollars at will. On top of the high prices, major cities will soon be switching to reformulated gas thanks to the EPA which adds $.10 cents to the gallon.