A new report is out by the American Petroleum Institute. And in the report, API found that the demand for gasoline here in the US of A has dropped to an all-new low for the decade this past July.
To throw in some statistics, API found US refinery gasoline production dropped 2.3% this past July when compared to the same month in 2010. Commenting on the find, API said this is the first year-over-year drop for 2011.
Reasons for the decline in demand for gasoline can be attributed to either the unsettled economy or an increase in more fuel-efficient vehicles, added API.
“Consumers aren’t spending, and jobless claims have increased, so it isn’t surprising gasoline demand was down and overall demand slipped a bit,” said API Chief Economist John Felmy.
To further elaborate, the AAA added that Americans appear to have increased purchases of four-cylinder cars, as exemplified with the height in sales reported by the manufacturers. For instance, the Chevrolet Cruze accounted for 10% of Chevrolet’s sales through July while Ford is seeing equal success with their Focus and Fiesta.
“We have been in an economic soft patch this summer,” added Lacey Plache, chief economist for Edmunds. “There is quite likely decreased demand for driving vacations and other non-essential driving due to higher gas prices since late February and due to still weak economic conditions.”
– By: Chris Chin