Sucking us In and Dry: US gasoline use hits record despite high pump cost*

11 Apr 2007 21:32:36 GMT
Source: Reuters

By Tom Doggett

WASHINGTON, April 11 (Reuters) - Rising gasoline prices have not
discouraged Americans from driving, as weekly U.S. motor fuel demand
reached a new record high for April, the government said on Wednesday.

The national price for regular unleaded gasoline soared 9.5 cents over
the last week to $2.80 a gallon, up 12 cents from a year ago. It was the
10th straight weekly increase.

At the same time, gasoline consumption last week averaged 9.472 million
barrels a day, a record for April, according to the federal Energy
Information Administration.

"The latest weekly data showed demand continuing to grow at a strong
clip. ... It takes a large increase in prices to significantly affect
demand," the Energy Department's analytical arm said in its weekly
review of the oil market.

Last week's gasoline demand shattered the prior April record of 9.338
million barrels a day set in 2004, the EIA said.

Gasoline demand two weeks ago also set a record for March, the agency said.

The EIA said data suggested pump prices would have to be "in the
neighborhood" of $3 a gallon before Americans would change their driving
activities.

The agency noted that gasoline demand growth slowed the last two times
the average retail price of gasoline surpassed $3, following Hurricane
Katrina in 2005 and most of last summer.

The EIA is forecasting that this summer's average gasoline price will be
3 cents less than last summer and should reach a monthly average peak of
$2.87 a gallon on a national basis in May.

However, pump costs this week have already topped $3 in many parts of
the country, including California's average of $3.25 and Washington
state's $3.01 a gallon.