Impact of rising gasoline prices

Five years after the price of gasoline started climbing, Americans are finally beginning to spend less time at the wheel and drive smaller cars.

Federal Highway Administration figures show that that in March U.S. drivers logged 18 billion fewer kilometres than a year earlier. That is a 4.3% drop and the biggest-ever year-over-year reduction in kilometres driven.

As a percentage of total U.S. auto sales, sales of light trucks – a category that includes SUVs – peaked at 55% in 2005. So far this year, light trucks have accounted for 47% of auto sales.

The persistence of high energy prices plays a role. It take time for consumers to make changes that substantially lower energy use such as buying a more efficient refrigerator, a smaller house or car.

Source: WSJ, 18/06/08