Americans won’t be taking long road-trips this summer—at least if the latest data on gasoline demand is any indication. The government reported Thursday that gas demand in the past four weeks was little changed from the same period in 2009 when the recession was in full swing. And it’s less than what Americans used on a daily basis during the boom years between 2004 and 2008. It’s more evidence that consumers continue to worry about jobs and paying the bills. The jobless rate is still flirting with 10% and consumer confidence is weak. In addition, gas prices nationwide are roughly 12 cents more per gallon than a year ago, another brake on discretionary spending. Retail sales have been sluggish, and recent recoveries in home and auto sales have stalled. Economists and oil traders watch government reports on gasoline demand this time of year because it’s the peak driving season, when vacationers join commuters and commercial drivers on the road. Right now, demand for gasoline also serves as a sign of how the economy is progressing.
The amount of gasoline used around the Fourth of July holiday can be a key indicator of what may occur the rest of the year, analysts say. The average price nationwide is around $2.72 per gallon. A gallon of regular unleaded in metro Baton Rouge sells for an average of $2.58, according to AAA’s Daily Fuel Gauge Report. That’s up 11 cents from the average last year, when a gallon cost $2.47.
