Fuel Supply and Demand

Gas prices are rising around the nation and this increase in price is leading to a decrease in driving, according to the Los Angeles Times.

The average U.S. price of a gallon of gasoline has jumped 19 cents over the past three weeks which now puts fuel prices at an average price for a gallon of regular gas at $3.76, according to The Lundberg Survey.

The price of gas is now 91 cents higher than it was this time last year according to the
- Star Tribune.

This increase in price had led to less drivers on the road, and consequently less gas being bought. 70% of the major gas station chains in the nation say sales have fallen, according to a March survey by the Oil Price Information Service and cited in the - Los Angeles Times.

Furthermore, according to MasterCard SpendingPulse, which tracks spending at gas stations nationally, drivers bought 2.7 billion gallons of gas in the first full week of April, which is a 3.6% decline from the same period in 2010 when gas was 80 cents cheaper.

"The tipping point probably has moved somewhat over time," said Mantill Williams, spokesperson for the American Public Transportation Authority. "As gas prices rise, consumers get accustomed to it. As you start to get close to $3.50 and toward $4, that's the point when people start to see there's a cheaper way to get around."

According to - ABC News, The Energy Department said good weather and vacation driving cause gasoline demand to average about 5% higher during the summer than during the rest of the year which means these prices are only going to continue to rise this summer.

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This page contains a single entry by fazio011 published on April 13, 2011 1:21 AM.

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