Consumers’ gasoline price ‘breaking point’ hits $3.44/gal

23 April 2013 22:07  [Source: ICIS news]

HOUSTON (ICIS)--Half of US drivers think the retail price of gasoline is “too high” when it reaches $3.44/gal, and many are making changes to offset the higher prices, automobile organisation AAA said on Tuesday.

“It was not long ago that motorists were shocked to pay more than $3 per gallon for gasoline, but now that is standard at stations nationwide,” said Robert Darbelnet, president and CEO of AAA. “Today’s average consumer feels a breaking point on high gas prices closer to $3.50 per gallon, and expensive prices have forced many motorists to change their driving habits.”

The new AAA gas-price index, which tracks consumer attitudes by determining at what price the cost of gasoline becomes too high, also showed that consumers are changing driving habits in order to curb the higher prices.

According to AAA, 86% of consumers are simply driving less, while 54% are driving a more fuel efficient vehicle.

The current national average price of a gallon of regular unleaded gasoline in the US is at $3.52/gal, with prices varying by more than $1/gal nationwide, AAA said.

“While the national average has not surpassed $4/gal since 2008, it is not uncommon for motorists living in the west coast, northeast and near the Great Lakes to pay more than $4/gal,” said AAA’s Michael Green.

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By: Anna Matherne

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