Nationwide Gas Prices Fall; Drivers Still Drive Less

Friday, December 12, 2008 23:42

I don’t think it’s news to anyone that gas prices are continuing to fall.  Even though we thought the end of the gas price decline was near, it appears prices won’t be going back up anytime soon.

What is news, however, is that Americans are driving less than they were when gas prices were high.  The Business Courier reported today that the U.S. Department of Transportation found Americans drove 100 billion fewer miles between November 2007 and October 2008, even after gas prices began to fall.

100 billion fewer miles.  That’s a lot of not driving, although it may shed even more light on the declining gas prices.  As oil prices by the barrel continue to drop, we have to consider the fact that less people driving means less demand, which always leads to lower prices.

Some of this has to do with a change in behavior for American drivers.  Perhaps they’re going Green and just don’t want to burn more fuel, maybe they’re unemployed, maybe they’re exercising more, or perhaps it simply is a fact that Americans don’t drive as much as they used to.

Whatever the reason, the result is clear: fuel prices dropping to below $1.50 in many parts of the country.  Which also means less fuel tax income for state highway departments, which means less money to fix roads and infrastructure.  So you may be paying for that cheap tank of gas next year when your state has to raise taxes to fix all the potholes.

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Posted in category National Gas Prices, News

7 Responses to “Nationwide Gas Prices Fall; Drivers Still Drive Less”

  1. Philadelphia Movers says:

    February 20th, 2009 at 2:32 pm

    Interesting article. I think that people have gotten a taste of high high gas prices could be and now that prices are down they realize that the prices don’t have to be that high. At the time they were high, people thought they have no choice because that’s just how much gas costs. But now that prices are back down people are seeing that gas doesn’t have to cost that much and that the high prices were quite inflated. It’s good that people are driving less now, hopefully it will help to keep prices down.

  2. dc sports says:

    March 5th, 2009 at 10:39 pm

    A really interesting article indeed. The law of supply and demand as what they say. If less and less people drive their cars, it means lower gas prices. And that is something good for us consumers.

  3. [email protected] louis martial arts says:

    June 7th, 2009 at 1:55 am

    It’s a good news that gas prices are falling and most of the consumers are already aware of this. Hopefully, it will stay this way.

  4. [email protected] movers says:

    July 3rd, 2009 at 3:19 am

    Polly, I don’t know where you live, but in our area the gas prices are going up(CA)

  5. auto shipper says:

    July 14th, 2010 at 4:52 pm

    Gas prices are still falling and hovering around $75/barrel. The oil spill in the gulf certainly isn’t helping…

  6. Cerritos Infiniti says:

    September 7th, 2010 at 12:56 pm

    I realize this is a super old post. I still wanted to comment. I think that the reason why people started driving less is because they got used to driving less when gas prices went up and it became a habit. Perhaps they realized that it wasn’t necessary to drive as much.

  7. [email protected] says:

    March 22nd, 2012 at 4:03 pm

    I’m landing on this page a bit late, but here we are, three years later, still doing this same gas price dance. I’m hoping with our friends in Israel, who are going to be coming into oil very soon, we’ll be able to bring prices down a bit and not have to rely on the whims of OPEC.