Have gas prices soared so high that people are just deciding not to drive?
GasBuddy analyst Patrick De Haan shared on Twitter that according to GasBuddy data, demand for gasoline in the US fell 2.3% from the previous week and was 1.5% below the four-week rolling average.
Gas prices continue to soar, and is likely to breach US$5/gallon this week. The national average cost of gas on Tuesday has risen to over US$4.90 per gallon, as De Haan previously predicted. This is coming from a national average of just over US$3 to a gallon at the same time last year.
He also adds that “the national average, up 32c/gal from a week ago, is in its second sharpest weekly rise since the Russia war on Ukraine began.”
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The falling demand could be temporary, based on the many factors around it, including how people are just coming back from the long weekend, or the impact of the hybrid work setup, as Twitter users have mentioned in their replies to De Haan.
Data from the upcoming summer driving season should provide a more significant measure of demand destruction coming from the skyrocketing cost of gas.
Information for this briefing was found via GasBuddy and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
