Another Plunge in 3-Month Rolling Average of Petroleum and Gasoline Usage

This may come as a shock to most of you but actual petroleum and gas usage in the states has been on a steep decline although you wouldn't be able to tell that looking at gas prices at the pumps today.  We are actually back to gasoline usage levels from late 2001/early 2002.  

Chart courtesy of US Energy Information Administration

I assume that improved gas mileage in vehicles would be a source attributable to the decline but I highly doubt that it contributes a large % of the decrease.  So what could be the big drivers to reduced usage?  How about simple supply and demand.  Costs go up and demand goes down.  With people as I continue to point out still stuck in a recession or depression they cannot afford to drive with the levels of prices over the past years.


Tip to Mish Shedlock for isolating this data here