Fueled by Low Pump Prices, Motorists to Drive More in August, Survey Says
About one in three U.S. motorists expect to drive more in August as low gasoline prices help fuel optimism for the broader economy, a new retail survey released Aug. 11 shows.
The survey by the National Association of Convenience Stores is the latest piece of evidence of the resurgence in road traffic that has enticed refiners to run at record highs. The higher than expected surge in gasoline demand — a closely watched figure that represents 10% of the global market — also has helped provide a floor to crashing oil prices.
Motorists are paying an average of $2.58 per gallon, nearly a dollar less than a year ago, according to AAA, the nation’s largest motorist advocacy group. And a quarter of respondents expected prices to continue to decline, up from 10% a month ago.
The survey found that nearly 80% of people say gas prices influence how they feel about the economy. And with gas prices down nearly $1 from a year ago, motorists are feeling positive about the direction of the economy, the survey found.
“There is good news for retailers as consumer optimism picks up during peak vacation season,” said Jeff Lenard, NACS' vice president of strategic industry initiatives.
The survey found that 34% of people expect to drive more during August compared with 8% who said they will drive less.
The national average gasoline price per gallon dipped below $2 in January, but most people don’t think the country will see those prices again anytime soon. Respondents said if pump prices fall below $2, they would drive even more frequently and have additional discretionary income.
“The sub $2 would be interesting,” Lenard said. “In previous times, we had big declines that were for terrible events: 2008 economic collapse and 9/11. Those were demand-driven. This is supply-driven.”
