US Consumers Driving Less Despite Gasoline Prices Down 20%

American consumers are driving less, with some changing their habits, despite gasoline prices in the US are down almost 20% from their all-time high level.

The national average stood at $4.033 per gallon (3.785 liters) for regular gasoline on Tuesday, down 14% from $4.696 a month ago, according to figures from the American Automobile Association (AAA).


The current price is a whopping 19.6% decline from the all-time high of $5.016 that was recorded on June 14, according to data compiled by Anadolu Agency.

The price of diesel also showed almost a 12% decrease to $5.120 per gallon, from its record high level of $5.816 that was seen on June 19.

Despite the massive price declines, American consumers are still driving their vehicles less this summer season, which is a period when driving usually reaches its peak level every year.

"It's another sign that, for now, Americans are changing their driving habits to cope with higher pump prices," the association said in a statement on Monday, adding that the cost of crude oil is falling amid fears of an economic slowdown around the world.

"Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices," said Andrew Gross, the association spokesman.

"Couple that with fewer drivers fueling up, and you have a recipe for gas prices to keep easing. It's possible that the national average will fall below $4 this week."

A survey from the association shows that 64% of Americans have changed their driving habits since March when the price of American crude oil benchmark West Texas Intermediate climbed above $116 per barrel – its highest in 14 years.

Out of this percentage, the top three groups indicated that they drive less, combine errands, and reduce shopping or dining out due to high gasoline prices, according to the survey conducted between June 23-27 based on a total of 1,002 interviews.

"While many Americans are adapting their daily habits to make up for higher gas prices, it also affects their future travel plans. Many Americans have postponed taking a vacation this year," according to the association.

It also noted that if gasoline prices in the US were to reach $5.00 per gallon, as it did during the month of June, 75% of American consumers said they would need to adjust their lifestyle in order to offset the price increase at the pump. -