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California Gasoline Consumption Declining
30 April 2008
California consumed 4.5% less gasoline, including aviation gas, in January 2008 than in January 2007, according to figures released by the State Board of Equalization (BOE). The BOE is able to monitor gallons through tax receipts paid by fuel distributors.
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| California gasoline consumption. Click to enlarge. |
Total gallons of gasoline used in January 2008 were 1.234 billion—58.2 million less than in January 2007. For all of 2007, Californians used 0.97% less gasoline compared to the previous year. Californians used a total of 15.672 billion gallons of gasoline for the twelve months of 2007—a decline of 153 million gallons from the total of 15.825 billion gallons for the calendar year 2006. Gasoline consumption in the state has now fallen for two years in a row.
The January 2008 pump price averaged $3.30 per gallon, 68 cents above those seen in January 2007 of $2.62.
Despite the drop in gallons consumed, the BOE estimates that sales tax revenue has increased due to higher gasoline prices. Higher prices generated approximately $299 million in sales tax during January 2008. In contrast, January 2007’s gasoline sales generated $249 million.
Figures for February 2008 are scheduled to be available near the end of May.
April 30, 2008 in Brief | Permalink | Comments (44) | TrackBack (0)
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A 4.5% drop is huge and probably indicated more economic problems than conservation efforts. Though I can say that I've reduced my gasoline use by 20-40%, that's just anecdotal.
I swear, though, that Toyota must sell 1/4 of its Priuses in San Diego county alone. I see a dozen and more per day just commuting to and from work. And some days I see half a dozen scooters.
Posted by: Cervus | Apr 30, 2008 12:13:13 PM
If its not just the economy. This is the first good new in along time. If it goes to $10 a gallon. There will be electric cars on every corner.
Posted by: C Dell | Apr 30, 2008 12:28:53 PM
Its almost $10 per gallon here in the UK and people are still buying SUVs despite looming higer annual vehicle excise duties. Most of that (i.e. over 60%) is state taxes!!!
Sources reckon we will be paying $3.00 per litre next year ($12.00). But we already pay $2.25 per litre as it is!!! Despite gas increases, there are as many cars as ever on the road because there are no other ways of getting to work for many people. I don't see many Hybrids either because people cannot afford them or anything else for that matter. People are just cutting back on nights out etc.
If or when gas prices reach $10, people will still be in their SUVs - people will simply get used to higher gas. I've had thanks to our government using a green smokescreen to levy car and gas taxes to fill the black hole in their finances.
Posted by: chillegibbo | Apr 30, 2008 12:54:25 PM
Interesting gasoline use comparison:
California, 156,000 sq mi, 37 million people, (2006) GDP: $1.7 Trillion - 1.23 billion gallons of gasoline used in January.
Japan, 150,000 sq mi, 128 million people, (2006) GDP: $4.2 Trillion - 1.16 billion gallons of gasoline used in March
Posted by: Patrick | Apr 30, 2008 1:20:08 PM
So, gasoline goes up more than 20% in price and demand goes down less than 5%. Interesting price/demand function. I assume it is non linear and somewhat elastic. People still need to get to work and back.
Posted by: SJC | Apr 30, 2008 2:16:51 PM
I would say viscoelastic. As we get more hybrid, PHEV options there will be change. It just takes time.
Posted by: marcus | Apr 30, 2008 2:40:17 PM
What is happening is that sales of smaller cars have started to really zoom since the middle of 2007. That's why Honda's sales of their Civic models have gone way, way up, and expect more companies to sell in the B-segment class of automobiles (expect Honda, Nissan and Toyota to up the production of the Fit, Versa and Yaris models to meet increased demand).
Posted by: Raymond | Apr 30, 2008 4:49:16 PM
Two thoughts on this news item that are not clear:
Is this the consumption of gasoline before dilution to make gasohol or is this the volume of blend?
If this is the actual volume of gasoline blend sold, what would the consumption have been if it were not cut with alcohol? (Gasoline mixed with alcohol gets lower gas mileage than straight uncut gasoline.)
Posted by: Bill Young | Apr 30, 2008 5:12:34 PM
Bill: if this measuring the gas taxes at the pump, then that's a blend. in california, all blends are up to but no more than 10%. the actual blend percentage varies from station to station (and potentially pump to pump, for that matter)
Posted by: lensovet | Apr 30, 2008 5:24:16 PM
Good thought Bill, that made me stop and wonder. I guess demand is down and there are a lot of factors to consider. Driving less single person per car miles may be one of those. Leaving that big SUV in the garage may be another. Selling that big SUV and sending it out of state, but dealers don't want them in trade...and on and on.
Posted by: SJC | Apr 30, 2008 6:22:19 PM
Raymond:
And Ford increased production of the Focus 30% as well. Big shift in the auto market taking place right now.
Posted by: Cervus | Apr 30, 2008 7:58:17 PM
Hope is in the Hybrid!
Fuel demand can be cut in half if every household with two vehicles operates one small hybrid for commuting, reserving the SUV AWD for the two weekends per year that its owner is on vacation in the back country:
Apr 21, 2008
US hybrid sales up 38 percent in 2007; Prius leads the pack
By DEE-ANN DURBIN
AP Auto Writer
DETROIT Kim Fenske drives a bus in Colorado by day, but when he's not working, he zooms around the mountains in a 2007 Toyota Prius.
Fenske, an attorney by training who has also worked as a forest ranger, was an environmentalist long before hybrid cars like the Prius hit the market. In the early 1990s, he ran unsuccessfully for the Wisconsin state legislature on a renewable energy platform.
But he recently decided to go one step further and make an environmental statement with his car.
"My decision is a very political decision. I want to get people in this country off their dependency on foreign oil," said Fenske, 48, who lives at the Copper Mountain ski resort near Frisco.
A growing number of buyers feel like Fenske. U.S. registrations of new hybrid vehicles rose 38 percent in 2007 to a record 350,289, according to data to be released Monday by R.L. Polk & Co., a Southfield-based automotive marketing and research company.
Hybrids made up just 2.2 percent of the U.S. market share for the year, but they were growing steadily even as overall sales declined 3 percent.
Lonnie Miller, director of industry analysis at Polk, said rising gas prices may affect some buyers, but they're not the main driver of hybrid sales. Instead, he thinks sales jumped in 2007 because buyers had more options, including the new Nissan Altima, Saturn Aura and Lexus LS600h hybrid sedans and hybrid versions of the Chevrolet Tahoe, GMC Yukon and Mazda Tribute sport utility vehicles.
"The gas price thing is a constant that is keeping consideration in their minds," Miller said.
Another important factor is that hybrids have been on the market long enough for consumers to trust the technology, Miller said. The Prius, the second mass-market hybrid after the Honda Insight, went on sale in the U.S. in 2000.
The Prius remained the best-selling hybrid in 2007, commanding 51 percent of the hybrid market, up from 43 percent in 2006 despite the influx of new hybrids.
Fenske's previous vehicle was a van, which he bought to move his belongings from the Midwest to Colorado. But Miller said most buyers appear to stay within the segment they were in previously when they opt for a new hybrid. For example, more than half of those who bought the Lexus LS600h had a previous vehicle in the luxury segment. Miller said that's why it's important for automakers to have hybrid SUVs, even though some drivers like Fenske argue that big hybrids don't save enough fuel.
"It's a good call on automakers' parts to not make their hybrids so funky and out of body style than what's already out there," Miller said. "People have requirements for what they need."
California remained the top state for hybrid sales in 2007. Twenty-six percent of all hybrid registrations were in California, up 35 percent from 2006. Florida, New York, Texas and Washington followed.
Miller forecasts more of the same this year, despite warnings from automakers that U.S. car sales could be at their slowest pace in more than a decade due to high gas prices and the weak economy. Miller predicts hybrid sales will rise 30 percent or more.
"This segment has still outpaced what the rest of the industry has done. I can't see the hybrid category totally chilling out," Miller said.
Fenske, who closely monitors hybrid discussions groups on Web sites like Edmunds.com, hopes more people will do the research and the math he did and buy a hybrid car. He figures he's saving $3,000 per year in maintenance compared to his old vehicle, plus $2,000 to $3,000 per year in fuel costs for his 20-minute commute. He says he gets around 48 miles per gallon.
Fenske said he waited several years to buy a hybrid because he wanted to make sure the technology was proven. Then, he was concerned about how the little car would perform in the mountains. He has had to make some compromises; he can't drive up some rough roads, but he has decided to hike or bike instead. But for the most part, the car has exceeded his expectations.
"Last night, I drove back from a union meeting in the middle of a blizzard and I had no traction problems at all," he said. "I was passing SUVs in the ditch left and right."
Posted by: Kim Fenske, JD, MST | Apr 30, 2008 8:02:54 PM
Don't even bother owning that SUV. When you need one, rent.
Posted by: Engineer-Poet | Apr 30, 2008 9:53:35 PM
Well, I did my part by getting a Prius and now commute primarily in that instead of my WRX which my wife does primarily short tips on. Cut our fuel consumption by 25%. Still looking/waiting for the perfect high mpg commuter and then my wife will use the Prius around town. Hopefully cut our fuel consumption by another 15-20%.
And Cervus, if you think there are a lot of Prius here in San Diego, you should visit the Bay Area some time. There are a lot more up there, though it does seem like every other Prius I see in San Diego is new and still has dealer plates.
Posted by: Dave | May 1, 2008 1:46:57 AM
Like I've been saying, if California is serious about cutting greenhouse gases, they won't try to regulate emissions per mile, they'll hike up the gas tax! They can return the money in a more progressive form (low- to mid-income tax cuts, medical subsidies, etc.), and they don't have to fret one bit about our inept/corrupt Federal government.
If you regulate emissions per mile, people will just drive more miles. We learned that lesson in the 1980s, but nobody cares today.
[q->t to email]
Posted by: Adam | May 1, 2008 8:48:24 AM
Engineer Poet:
You can...sell your WRX and get another hybrid.
Posted by: Noz | May 1, 2008 9:57:52 AM
Noz, names are below comments not above them...Dave owns the WRX not Engineer-poet.
Posted by: Patrick | May 1, 2008 10:23:18 AM
The same might hold true on EVs. If you need a gasoline vehicle on the weekends, rent one. Car rentals like weekend renters. If they rent to business and car repair during the week, they would like to rent on weekends too.
Getting someone to give up their perceived freedom and convenience is hard. People buy pickups for the few days a year that they haul something. They buy large SUVs for that one day a month that they take a trip or haul the boat.
They also buy 200 hp engines when they use 20 hp most of the time, but feel that they need that 200 hp now and then and do not want to be caught short. So they haul a 5L cast iron V8 around that gets 14 mpg around town.
Posted by: SJC | May 1, 2008 10:43:00 AM
Hybrid Lexus = lipstick on a pig
Posted by: ShastaTodd | May 1, 2008 11:46:54 AM
Speaking of hybrid lexus...
They should offer an IS with hybrid. Maybe call it an IS300h and use a variant of the Camry hybrid drivetrain - not sure how they could differentiate the drivetrain from the Camry (as Lexus buyers may expect) but I doubt it would incur a weight penalty greater than the 3.5L V-6 they use in the IS350 and would probably outperform the IS250 in terms of both acceleration and fuel economy.
Posted by: Patrick | May 1, 2008 3:25:55 PM
Cervus,
Don't be surprised that the upcoming 2010 model year Ford Fiesta will be built in the USA, too. Ford is about to announce the second-generation Ford Ka, and that model might make to the USA market, too.
Posted by: Raymond | May 1, 2008 7:43:23 PM
Its mostly the house flippers running out of gas.... litteral'/
In this small area alobe I know of several dozen flippers who have lost everything including multiple hummers... still while shopping yesterday we saw a massive old hummer 1 eumbling out of the parking lot at the safeway...
Posted by: wintermane | May 2, 2008 1:13:50 AM
$$300,000,000.00 in ONE month sales tax. No wonder some want a carbon tax - what'll happen when this sweet gravy train dries up??
Posted by: sulleny | May 2, 2008 6:01:16 AM
Speaking of gas tax, the idea of suspending the 18 cent federal gas tax for the summer seems odd to me. Each person might save $20 and the government would lose $2 billion. I am not sure what that is suppose to do, but in an election year I guess almost anything is possible.
Posted by: SJC | May 2, 2008 8:38:25 AM
Patrick:
Very interesting stats; Cal vs Japan.
If my maths are correct, one of our false pretension is coming down. i.e. that our gas consumption is high because our per capita GDP is high.
From your stats:
1) Cal. GDP = $1382 per gallon.
2) Japan's GDP = $3621 per gallon.
Note: Japanese produces almost three times more per gallon than Californians and it is not due the the difference in physical land size because they are practically the same.
Who knows the reasons?
Posted by: Harvey D | May 3, 2008 8:06:55 AM
@ Harvey D.
I have met some german people who drive 4-cylinder diesel cars/station wagons, although they can afford
8-cylinder vehicles. With the money saved, they can take better vacations, etc...
I wish there were many people like them in México because we are running out of easy oil !!
Posted by: Jorge | May 3, 2008 2:48:09 PM
Cal will improve soon we just need to wait for the big quake to remodel san fran san diago and la so we can build better more planned cities where they stood. Sgould be rather soon now.
Posted by: wintermane | May 3, 2008 5:27:35 PM
Sorry to jump in so late. For the comments by Patrick and SJC (and others), I have published about two dozen paperson Energy Policy and other journals about Japan, the US, and EUropean fuel use for transport.
I won't go through all the numbers here, but my latest work (on http://embarq.wri.org/en/Article.101.aspx) finds these differences
US 21 MPG on road
Japan 23 MPG on road
EUrope 29 MPG on road (counting diesel at its ENERGY equivalent of gasoline)
Europeans have 75% as many cars as americans, per capita
Japanese have 66% as many cars as americans
Europeans drive their cars about 2/3 as many km/car/year as americans, Japanese less than 1/2
So most of the US Japan difference is km/capita...
and the US/Europe difference is about half km/capita and half energy/km
The present price in California, about $4/gn compares with about $7 in Japan (at exchange rates), $8-9 in the middle of europe and $9-10 in Sweden and $11/gallon in Turkey.
AS for how much prices impact consumption, since 2002 US GDP has grown about 4x faster than road fuel consumption, rather than about 1.2x faster as in normal times. That implies that in 2007 fuel use is about 15%-20 lower than expected for a doubling of the real price since 2002. That in turn implies a fuel price elasticity of about -0.1 i the short term. Other work I have published (Johansson and Schipper, JTEP, Sept 1997) says that in the longer term (i.e., if the same price increases hold over 15 years, the time it takes to junk every car on the road) demand might be as much as 70% as we would have expected with no price change.
So,m $4/gallon in real terms held constant for the next 15 years (i.e., assuming McHillary does'nt lower the gasoline tax) while GNP grows about 75% says fuel demand in 2023 will be about what is is today, rather than 60% higher. The new fuel economy standards don't kick in in ful until 2020 (unless California has its way), so they might act to keep demand flat through 2035, by which time the entire US fleet of cars and light trucks will have attained 28MPG on the road (35 MPG cafe average)
I can't wait
Lee Schipper
Berkeley CA
Posted by: lee schipper | May 3, 2008 6:39:25 PM
C Dell above rues the SUVs on the crowded roads in the UK. Well, in my article I posted in the EMBARQ web site, i found that in the UK fuel use/capita is only a 1/3 of what it is in the US, the on road fuel economy is close to the EU Average of 29 MPG.
The roads are crowded because the UK is crowded. And because it is crowded, as the UK National Travel Surveys Show, about 1/4 of British don't use cars to get to work, vs about 9% of Americans.
Imagine if 1/4 of Americans didn't use cars to get to work. Trips to work account for 25% of all miles -- remove 16% of those (to get to the British share), and wow 0.16 x 0.25 x 7 million barrels/day or 280 000 bpd saved...not bad.
Posted by: lee schipper | May 3, 2008 6:48:51 PM
And to respond to Dave above on May 1, the two most recent papers on the "regulate fuel/mile and drive more miles", or rebound effect (see Small and Vandender 2007 or Sperling et al) find that this rebound, the "drive more miles" is a 5-10% effect; in other words, for every 10% fuel savings imposed by standards, 1/2 to 1 percent comes back as miles driven.
Doesn't seem like such a bad deal, does it?
Posted by: lee schipper | May 4, 2008 5:30:36 PM
Besides what lee schipper cites from the paper he mentioned there would have to be a point at which drivers would no longer wish to extend their commute (time spent on the road) regardless of increases in fuel economy.
Now, in 10 years when new vehicles feature more autonomity; I wonder if drivers will feel less worry about time spent on the road?
Posted by: Patrick | May 4, 2008 10:11:08 PM
I've been trying to test drive a Honda Fit for the last couple weeks but they are always sold out at the local dealership. This last month it seems like I am seeing at least one SMART car on the road every single day and less SUVs. My place of employment has finally decided to let us schedule one day a week we can work from home and I have a feeling thats going to happen at other companies whenever possible. Yes, I live in San Diego also, and see more and more Priuses on the road all the time.
Posted by: Sally | May 5, 2008 5:57:45 PM
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we can work with you in CIF with good condition ,
any interested buyer can contact me. jamesnaa72@gmail.com
James
Posted by: JAMES NAA | May 20, 2008 4:57:44 AM
I'M GLAD TO SEE THAT SUPPLY AND DEMAND IS WORKING, SINCE DEMAND IS DOWN 5% THAT MEANS THE PRICE PER GALLON IS ALSO DOWN BY 5%, SO WE'RE ONLY PAYING ABOUT $2.50 A GALLON FOR GAS, RIGHT? OR MAYBE WE SHOULD PAY $10.00 A GALLON FOR GAS LIKE THEY DO IN THE UK, THEN THE OIL COMPANIES COULD AFFORD TO PAY FOR OUR UNIVERSAL HEALTHCARE, LIKE THE GOVERNMENT DOES IN THE UK,
LARRY
Posted by: lj | Jun 11, 2008 11:12:10 AM
“Posted by: chillegibbo | Apr 30, 2008 12:54:25 PM - Interesting gasoline use comparison:
California, 156,000 sq mi, 37 million people, (2006) GDP: $1.7 Trillion - 1.23 billion gallons of gasoline used in January.
Japan, 150,000 sq mi, 128 million people, (2006) GDP: $4.2 Trillion - 1.16 billion gallons of gasoline used in March”
– 'Course you forgot that Japan’s 3.5x higher density AND artificially high/taxed car/fuel prices causes/allows them to have more public transportation (NOT figured in your Gasoline use!) vs. single occupancy Freeway networks. Not to mention smaller more efficient cars due to space/parking constraints.
You want to enjoy/suffer the JapRat lifestyle – go ahead and move there!
Posted by: HateTheBus/Train | Jun 13, 2008 1:18:21 PM
For Dr. Schipper - just a quick question. In http://embarq.wri.org/automobile_fuel.pdf
"Energy use and travel for personal transport in wealthy countries is dominated by automobiles. ...these vehicles still account for roughly 9% of total energy use (and 20% of oil use) in OECD countries, with higher shares in the United States (1.)"
How does a usage of 9-20% "DOMINATE" the other 92-80% of energy/oil uses? Isn’t electricity generation actually the largest?
I'm SO tired of Pathos like "dominate" being used with no perspective given. At least show what the send/third biggest energy/oil users are?
Posted by: HateTheBus/Train | Jun 13, 2008 1:33:31 PM
At the end of the day you either believe in the free markets or you don’t. Believing in a managed economy is a bit like cheating in school and feeling good about it as long as you don’t get caught. It appears to be a good idea especially if you can convince yourself that everyone else is doing it. Two things happen in the end, you get caught but more importantly you don’t learn and will pay the many prices of ignorance, laziness and deceit. People are not perfect, capitalism will never be, but it is the only true system for a country that wants to survive.
Posted by: Jim | Jun 14, 2008 1:57:55 PM
natural gas. where is the natural gas disscussion ? it's cheaper. it's cleaner. it's everywhere that americans drive. it can be dispensed at home, no fuel/gas stations needed.
talk about a "missed the boat".
Posted by: troll a. frogg | Jun 14, 2008 3:56:54 PM
Seems it would be relevant to point out that CA's population is declining. Go look at the stats. What matters is fuel per person, not total consumption. So they should adjust their analysis to take this into account. So don't get too excited yet CA people.
Posted by: John in GA | Jun 15, 2008 12:21:53 PM
PLEASE DO YOURSELF A FAVOR....READ THIS!
The Plan!
?
Robin Williams, wearing a shirt that says 'I love New York ' in Arabic.
You gotta love Robin Williams......
Even if he's nuts! Leave it to Robin Williams to come up with the perfect plan. What we need now is for our UN Ambassador to stand up and repeat this message.
Robin Williams' Plan...(Hard to argue with this logic!)
'I see a lot of people yelling for peace, but I have not heard of a plan for peace. So, here's one plan.'
1) 'The US will apologize to the world for our 'interference' in their affairs, past and present. You know, Hitler, Mussolini, Stalin, Tojo, Noriega, Milosevic, Hussei n, and the rest of those 'good ' ole' boys;' we will never 'interfere' again.
2) We will withdraw our troops from all over the world, starting with Germany, South Korea, the Middle East, and the Philippines. They don't want us there. We would station troops at our borders. No one allowed sneaking through holes in the fence..
3) All illegal aliens have 90 days to get their affai rs together and leave. We'll give them a free trip home. After 90 days, the remainder will be gathered up and deported immediately, regardless of whom or where they are. They're illegal!!! France will welcome them.
4) All future visitors will be thoroughly checked and limited to 90 days unless given a special permit!!!! No one from a terrorist nation will be allowed in. If you don't like it there, change it yourself and don't hide here. Asylum would never be available to anyone. We don't need any more cab drivers or 7-11 cashiers.
5) No foreign 'students' over age 21. The older ones are the bombers. If they don't attend classes, they get a 'D' and then it's back home, baby!
6) The US will make a strong effort to become self-sufficient energy wise. This will include developing nonpolluting sources of energy but will require a temporary drilling of oil in the Alaskan wilderness. The caribou will have to cope for awhile< /FONT> .
7) Offer Saudi Arabia and other oil producing countries $10 a barrel for their oil. If they don't like it, we go someplace else. They can go somewh ere else to sell their production. (About a week of the wells filling up the storage sites would be enough.)
8) If there is a famine or other natural catastrophe in the world, we will not 'interfere.' They can pray to Allah or whomever, for seeds, rain, cement or whatever they need. Besides, most of what we give them is stolen or given to the army. The people who need it most get very little, if anything.
9) Ship the UN Headquarters to an isolated island someplace. We don't need the spies and fair weather friends here. Besides, the building would make a good homeless shelter or lockup for illegal aliens.
10) All Americans must go to charm and beauty school. That way, no one can call us 'Ugly Americans' any longer. The Language we speak is ENGLISH..learn it...or LEAVE!
Now, isn't that a winner of a plan????
'The Statue of Liberty is no longer saying 'Give me your tired, your poor, your huddled masses.' She's got a baseball bat and she's yelling, 'you want a piece of me?' '
If you agree with the above forward it to friends...If not, and I would be amazed, DELETE IT!
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Posted by: Anthony M. Griesehop | Jun 15, 2008 8:55:45 PM
Why did consumption go up so much from 2001 to 2004?
Posted by: John Bailo | Jun 22, 2008 1:10:13 PM
The comparison of GDP between California and Japan is like comparing apples to bowling balls. For example, the population and manufacturing density in Japan is far greater than in California. The delivery of bumpers for JIT (just in time) manufacturing to the Toyota plant is much closer than a farmer in the San Joaquin Valley delivering fruit to Los Angeles. This is just one example but the entire data set/comparison from the way it has been explained above is next to meaningless.
"Lies, Damn Lies and Statistics"
Benjamin Disraeli
Posted by: Huh? | Jun 30, 2008 3:48:59 PM
CHEVY VOLT EXTEND RANGE 1000+MILES DELETE IC MOTOR WHICH ONLY DRIVES BATTERY CHARGING GENERATOR ATTACH A 12 IN DIAMETER RING GEAR TO A WHEEL RIM TO DRIVE GEAR ON GENERATOR SHAFT N_O GAS REQUIR????
Posted by: BILL HUSAR | Jul 20, 2008 6:38:50 PM
That will obviously work BILL HUSAR.
But CHEVY VOLT EXTEND RANGE 1000+MILES AND Sell Electricity back to the grid every 40 miles. DELETE IC MOTOR WHICH ONLY DRIVES BATTERY CHARGING GENERATOR ATTACH A 12 IN DIAMETER RING GEAR TO each wheel WHEEL RIM TO DRIVE GEAR ON 4 GENERATOR SHAFTs.
N_O GAS REQUIR???
And
Sell power to the grid.
Posted by: ToppaTom | Aug 4, 2008 7:10:04 PM
