U.S. Gasoline Consumption Falls 6.1% in May as Iran War Price Surge Reshapes Driving
Updated
Updated · The New York Times · Jun 23
U.S. Gasoline Consumption Falls 6.1% in May as Iran War Price Surge Reshapes Driving
3 articles · Updated · The New York Times · Jun 23
Summary
U.S. gasoline consumption ran 6.1% below a year earlier in May, signaling that the late-February jump in pump prices curbed driving more sharply than spending data alone suggested.
Gasoline-station spending still rose 21% from February to May because higher prices inflated bills, even as Dow Jones Energy estimated about half of the consumption drop reflected consumers cutting back.
Lower-income drivers have been most likely to skip discretionary trips such as road travel and family sports outings, while some commuters have shifted to free senior transit, telework or electric vehicles.
The decline also reflects a longer-running efficiency trend, but the report suggests habits changed by the Iran-war price shock may keep U.S. gasoline demand from fully recovering.