What effect does gas price have on consumers?
Written by James Makishima (contact - e-mail) -- June 1st, 2007 |
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Gasoline prices have been on the rise for the past three years and 2007 seem to be on a track to beat last year as the highest on record. We looked into our data at Compete to see how high gas prices are affecting consumers.
We compared the monthly people count from websites GasBuddy.com and GasPriceWatch.com against the average gas price price for that month. We saw a general correlation between gas prices and GasBuddy.com—as gas prices increased, visitors to GasBuddy.com also increased. But the thing that really stuck out was the peaks in the visitor counts corresponding to subsequent gas price media releases.
We were able to match these single month peaks to news reports affecting gas prices:
- May 2004: “Gas Price Surpasses $2.00 a Gallon”
- March 2005: “Gas Price at Record $2.109 a Gallon”
- September 2005: “President Bush Warns Against Looting and Gas Price Gouging”
- April 2006: “President Bush Orders Gas Price Probe”
- June 2006: “Gas Price at Record $3.00 a Gallon”
Although people complain about the rising gas prices, it seems like they need someone to point out the rise before they become truly engaged (online) about the subject; a news report can increase people’s interest in gas price websites as much as 300%–a lot more than what gas price can do on its own.
When you look at the proportion of cars (which generally have better fuel economy) and light trucks (which generally have poorer fuel economy) registered, the light trucks peaked at 55% in 2004 versus cars at 45%. In 2006, light trucks represented 53% of the total and cars 47% so people are slowly shifting towards more fuel efficient passenger cars (versus less fuel efficient light trucks—pickup trucks, SUVs, and mini-vans). Although there are many other factors involved in vehicle purchase, it looks like high gas prices may be affecting consumers’ choice of vehicles.
Is the biggest impact to the consumer caused by weekly price increase? Is there a threshold price that makes people think twice about filling up? Gas prices rise so gradually that it’s difficult to perceive the change in everyday life. But when it suddenly costs you $100 to fill up the 39 gallon tank on your Chevrolet Suburban, that may perk your attention.
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June 2nd, 2007 at 9:54 am
nice ilike compete and see is more specific than other and show the trusted traffic of sites
http://www.3rb2000.com
June 3rd, 2007 at 1:40 am
In developing countries, high gas prices impacts on car/vehicle purchases. It also forces some to look into fuel additives or alternatives just to reduce the expenditure in it. In the Philippines, cabs or taxis have also started converting to LPG as primary fuel with gas as back-up in order to save.
June 3rd, 2007 at 4:47 pm
Janette, you raise an interesting point. Your point applies to developed countries also. In many European countries, there are tax incentives to reduce CO2 emission (green house gas). Diesel fuel reduce CO2 emission 30% compared to gasoline. So, countries put more tax on gasoline or give people tax incentive to buy diesel engined vehicles–making it cheaper to operate diesel vehicles than gasoline vehicles. As a result roughly 50% of new vehicles sold in many European countries are diesel engined. This brings us to a different point that government action can affect people’s purchase decision and can also slow down the effects of global warming.
June 18th, 2007 at 6:12 pm
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June 19th, 2007 at 2:45 am
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June 19th, 2007 at 5:45 am
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June 19th, 2007 at 11:38 am
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June 20th, 2007 at 2:02 am
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September 24th, 2007 at 4:00 pm
What is the impact of fuel prices on the economies of energy importing countries.
October 28th, 2007 at 12:32 pm
Jessie
Definitely, the most sensible thing i have seen in a long time.
June 4th, 2008 at 9:38 am
I know I dont drive or own a car do to the fact that i’m only 13 years old, but I think that if gas prices dont reach an amount that Americans will agree on (not mind) then we are going to not enjoy the world and what it has for us.
What I’m trying to say is many people would love to go to Rome ( - _- ) but gas prices are affecting everyone and everything, so first you have to get a plane ticket, BUT WAIT! you have to pay for the amount of bags you have. then you get your ticket…then your sitting back on the plane looking out the window and all of a sudden your hungry, but! yet again the food on the plane is not free. Finally you make your expensive trip to Rome. Now lets go back a little bit..You had $2,000 on the start of your trip (by the way your going by yourself) you paided for two of your bags which say is $35, then you pay for your ticket (ticket prices will range depending on the place where you desire) say it was $950, lets see there is already $985 down the drain and not for your trip, then you have to pay for the food on the plane, another $20..
So really what i’m trying to say is you just waisted $1,005 on the trip. Just remember once gas prices go up so do other things. (i just used planes as my example)
June 4th, 2008 at 9:46 am
You see gas prices are a major economic problem, and should be resolved quickly before anything else goes up. Listen America, better gas mileage is the key to your lower gas bill. I mean jeez, if you have a good car with good gas mileage your really a good person and care about the economy and conserving it. But if your one of those people who own Hummers, you are supper gay. You guys don’t care about the economy you little gas wasters. If you own a Hummer, and say you have great gas mileage, and are happy with the economy, and say other people should have Hummers, and you say George Bush is the president ever, you are very very…… hmmmmmmm let me think about this……. f’in gay, and get off this website.
June 4th, 2008 at 9:48 am
Hummers suck
June 4th, 2008 at 9:49 am
now if the Hummer costs idk 25,000 dollars you are wasting your money already
June 4th, 2008 at 9:50 am
the person who made this website is cool because i love expressing my opinion
June 4th, 2008 at 9:50 am
and by the way im 12 years old
June 4th, 2008 at 5:39 pm
lol derek, you posted like a hundred things…-_-
thats my boy! = D
June 15th, 2008 at 11:05 pm
Jessie
I learn something new everyday.
September 24th, 2008 at 1:38 am
your site is great,,,it helps me on my research about the effects of gasoline inflation
September 24th, 2008 at 1:39 am
good site
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