Is Summer Driving Season Out Of Favor? Gasoline Demand Down In CA

RIVERSIDE COUNTY, CA — The average price of a gallon of self-serve regular gasoline in Riverside County rose Monday one-tenth of a cent to $4.728, a day after it dropped six-tenths of a cent. It has dropped 33 times in 34 days.

Gas prices have dropped nationwide, and that may be linked, in part, to a dip in consumer demand.

"Gasoline demand has trailed 2023 for most of this year, and analysts believe economic uncertainty may suppress demand this summer," said Andrew Gross, an AAA national public relations manager. "So, is the typical robust summer driving season a thing of the past? Or is gas demand just taking longer to pick up steam? We may not know until autumn."

How do electric vehicles and hybrids factor into the equation? California leads the nation in the number of EVs and hybrids on the road, which impacts gasoline demand.

That trend may continue. Last week, AAA reported that interest in hybrids is climbing nationwide. One in three U.S. adults say they would be "very likely" or "likely" to buy a hybrid, according to AAA's annual consumer survey on EVs.

But even with a fuel-efficient vehicle, California traffic woes can contribute to driving decisions.

"What many people don’t realize is that traffic congestion can also be extremely costly because of the amount of time it wastes ..., according to Cassandra Happe, WalletHub analyst.

For those still fueling up with gasoline in Riverside County, the average price has dropped 44.2 cents over the past 35 days, according to figures from the AAA and Oil Price Information Service. It is 7.4 cents less than one week ago, 37.1 cents less than one month ago and 8.9 cents less than one year ago. It has dropped $1.645 since rising to a record $6.373 on Oct. 5, 2022.

The national average price was unchanged at $3.447, a day after it dropped a half-cent. It is two-tenths of a cent more than one week ago, 15 cents less than one month ago, 13 cents less than one year ago, and has dropped $1.569 since rising to a record $5.016 on June 14, 2022.