Supply and Demand Works, Again

Soaring gasoline prices have caused drivers to change their gasoline consumption habits.

According to a survey by Edmunds.com:

"This is a fascinating insight into how quickly consumer behavior is changing in response to high gas prices," said Philip Reed, Edmunds.com Senior Consumer Advice Editor. "Based on the results of the survey it appears we are moving into a very different era both on the highways and in the showrooms."

The survey, available to all Edmunds.com home page visitors between June 20 and June 25, asked visitors to respond to several brief questions. The 1,312 responses indicated the following:


95 percent of respondents report making changes to lifestyle as a result of high gas prices

o Nearly 50 percent are driving fewer miles or combining errands to reduce fuel consumption

93 percent of respondents have changed the way they drive or maintain their vehicle

o 44 percent of respondents report driving slower or less aggressively to increase fuel economy

35 percent of respondents say they are already in the market for a more fuel-efficient vehicle

o Over 50 percent will be in the market if gas reaches five dollars per gallon
Consumers are generally optimistic that fuel prices won't rise much more in the near future

o 73 percent believe the national average gasoline price will be under five dollars per gallon during Labor Day weekend (August 29 – September 1, 2008)

According to Edmunds.com, there are about 60 vehicles in the new-vehicle market that now cost over $100 to fill the gas tank. Edmunds.com says the median household is spending 11.5% of its income on gasoline, up from 4.6% of its income five years ago.