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Fuel Saving the only Road for US Drivers
Published in The Saudi Gazette on 15 - 03 - 2008

The US government tried to tackle high gasoline prices in the 1970s with a raft of measures, but this time around Washington is not offering much to ease the pain at the pump, so it will be up to consumers to find relief by conserving fuel.
While the public and many US lawmakers are calling on the Bush administration to take action, the White House says there is nothing it can do to bring down skyrocketing fuel costs this spring and summer.
“It would be wrong of the President to provide false hope to people to think that we are going to be able to have an immediate impact to reduce gas prices,” White House spokeswoman Dana Perino said this week.
The national price for gasoline is at a record $3.27 a gallon and is expected to top $4 this spring in many parts of the country.
“This problem didn't get started overnight, and it's not going to be solved overnight,” said Perino. “This is something we're going to have to all work through.”
When gasoline prices soared in the 1970s, the government lowered speed limits, imposed price controls and rationed fuel by requiring drivers to buy gasoline on odd or even-numbered days of the month depending on a vehicle's license plate.
“I don't foresee the reintroduction of price controls,” said Frank Verrastro, energy expert at the Center for Strategic and International Studies think tank in Washington. “Clearly, there are no easy, near term fixes for higher gas prices.”
The current gas price woes are also different from the 1970s when America had to deal with both low supplies and high costs. Today, supply is not an issue as US gasoline inventories are at the highest level in 15 years.
It is strong global oil demand, as well as speculative buying, that have helped push crude oil to records over $110 a barrel this week. Every $1 rise in a barrel of crude oil increases the price of gasoline by 2.4 cents a gallon.Curbing the thirstWith the government mostly sitting on the sidelines of this gasoline price crisis, American families are fighting high fuel costs by reducing fuel use. There are signs the country, the world's top oil consumer, is also turning its back on gas guzzling cars.
“Prices are finally getting high enough that people are cutting back on their gasoline consumption,” said Doug MacIntyre, senior analyst at the federal Energy Information Administration.
US gasoline demand is up only 0.4 percent, or 37,000 barrels per day to 9.093 million bpd, over the last four weeks compared with a year ago, which is much lower than the normal 1.5 percent growth rate seen, according to EIA data.
The EIA's new monthly forecast also sees US gasoline demand rising only 10,000 bpd on average in the April to June period compared to a year earlier and then actually falling by 10,000 bpd from July to September, when driving and fuel costs usually peak.
US gasoline purchases in the past four weeks have averaged 3.4 percent below the same period a year ago as high prices curb consumption, according to Mastercard, which uses sales activity in its payment system as a basis for its estimates.
The Commerce Department reported on Thursday that sales at US gasoline stations in February were down 1 percent from January, as fuel prices shot pass $3 a gallon.
A recent survey found that if gasoline prices hit $4 a gallon, over half of Americans would reduce holiday travel and cut back on personal spending to offset higher pump costs.
“Certainly if prices continue to go up, it wouldn't be too surprising to see more of a decline in demand,” MacIntyre said.
Consumers are also buying more cars and trucks that run on less fuel and are moving away from the big sport utility vehicles that now cost almost $100 to fill up.
“Prices matter. If you have cheap, inexpensive, readily available energy, no one has an incentive to use it wisely. When it's expensive, you have every incentive,” said Kateri Callahan, president of the Alliance to Save Energy. “Car sales are down, and the only bright spots in the car market are for the really fuel efficient vehicles and hybrids.”
Callahan said her group is joining with the American Petroleum Institute, Exxon Mobil, the Wal-Mart Foundation and other organizations to launch a campaign for the summer driving season to show people how to save gasoline.
Those tips include making sure vehicle tires are properly inflated, combining trips to stores and events, having the proper grade of engine oil and using public transportation.
A new report shows that daily ridership on US subways and public buses is at the highest level in more than 50 years, as people take steps to try to avoid the pain at the pump.
“In the short term, it's really up to the consumer,” Guy Caruso, who heads the EIA, told Congress last week. __


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