Demand Destruction Lowers Gasoline Consumption

Summer Gasoline Demand in U.S. Drops Below Pandemic Levels

gas pump
Inflation is experienced at the gas pump and in the grocery store.

If there was any question about higher prices affecting people’s behavior, this should clear it up: Gasoline demand in the U.S. over the past 4 weeks dropped below the pandemic level. While summer usually sees an uptick in gasoline consumption, this year consumption has dropped in June and July.

That may be good news for gas prices, which have fallen as supply increases, but it is bad news for the RV industry, the travel industry, and seasonal businesses in popular summer spots that depend on the tourist trade. That translates into lower consumer spending, layoffs and a recession.