US Gasoline Demand May Not Recover Post-Iran Conflict

Denton Cinquegrana, chief oil analyst at Dow Jones Energy, stated that about half of this consumption drop is a direct consumer response to higher prices, with the other half attributed to a long-term trend of increasing vehicle efficiency and the growing adoption of telecommuting. Many consumers, particularly those with lower incomes, are foregoing discretionary driving such as road trips and travel for sporting events.

Judy Vassallo, an 89-year-old retired art teacher, exemplifies this shift. She has transitioned from driving her 2002 Honda CRV to using the city bus, which is free for seniors, finding it easier and saving money on fuel and parking. Vassallo noted that once a behavior becomes a habit, it integrates into daily patterns.

The increased availability of electric vehicles on the market also contributes to a reduced demand for gasoline.