May 27, 2008

Rising Oil Prices Dampen Demand - Who Knew?

Filed under: economics — Joshua @ 6:15 pm

Check it out - the US Department of Transportation recorded the largest yearly drop in the history of measuring these things for number of highway miles that Americans clocked this March. It was down 4.3% over the previous year - 11billion miles less. This is, in fact, the first time that March travel on public roads has fallen at all since 1979 (i.e. since the last time there was a gas price crisis).

So for all those people out there who think that oil companies can just raise prices whenever they bloody well feel like it - there’s your answer. They pay for it in reduced demand.

Oh, and if you care about global warming, the government estimates that this translates in a 9million metric tons reduction in greenhouse gas emissions.

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