As the price of gasoline quadrupled over the last decade, American drivers seemed to defy the laws of economics by pumping more into their vehicles year after year
As the price of gasoline quadrupled over the last decade, American drivers seemed to defy the laws of economics by pumping more into their vehicles year after year.
But this is the year American drivers appear to be finally succumbing to price shock at the pump, according to a new report by Cambridge Energy Research Associates, a consulting firm affiliated with IHS Inc. It says the slowdown in the economy and soaring gasoline prices have finally persuaded Americans to drive fewer miles in fewer gas-guzzling vehicles.
The Transportation Department reported on Wednesday that Americans drove 1.8 percent fewer miles on public roads in April 2008 compared with the same month last year, the sixth consecutive month of driving mileage declines.
The Cambridge Energy report cites some fundamental shifts in consumer behavior that suggest the beginning of an enduring trend. The report noted that in California, where gasoline prices have historically led the rest of the country, gasoline consumption has declined for two consecutive years and hybrid vehicle sales are rising.
Now the rest of the country seems to be following. Sales of pickup trucks, minivans and sport utility vehicles have fallen below 50 percent of new passenger vehicle sales this year for the first time since 2001, the report says, as consumers turned to smaller vehicles in favor of fuel economy.
