• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 days Does Toyota Know Something That We Don’t?
  • 2 hours World could get rid of Putin and Russia but nobody is bold enough
  • 5 days America should go after China but it should be done in a wise way.
  • 20 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 1 hour How Far Have We Really Gotten With Alternative Energy
  • 13 days China is using Chinese Names of Cities on their Border with Russia.
  • 21 hours The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 2 days Even Shell Agrees with Climate Change!
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

High U.S. Gasoline Prices Set To Dent Demand

  • Target Corporation’s chief executive Brian Cornell: American consumers will drive less this year
  • Cornell: Some of the historical ways consumers react to inflation will play out again in 2022
  • Inflation in the U.S. in 2021 hit the highest in 40 years

American consumers will drive less this year and will look to make fewer shopping trips due to the high gasoline prices and high inflation rates, Target Corporation’s chief executive Brian Cornell said this weekend.

“Some of the historical ways consumers react to inflation will play out again in 2022,” Cornell said during the National Retail Federation’s Big Show in New York on Sunday, as carried by Bloomberg.

“You’ll drive fewer miles, you’ll consolidate the number of times and locations where you shop,” Cornell added.

Gasoline prices in the United States continue to hold high at a national average of $3.31 per gallon of regular gasoline as of January 17, per AAA data, despite the apparent drop in demand in recent weeks. The current average compares with $2.385/gallon average a year ago.

In addition, inflation in the U.S. in 2021 hit the highest in 40 years, after consumer prices for all items rose by 7.0 percent from December 2020 to December 2021, the U.S. Bureau of Labor Statistics said last week. This was the largest December to December percent change since 1981. Gasoline prices were up 49.6 percent after falling 15.2 percent in 2020—the largest increase in 2021 in all selected items, the data showed.

Energy prices as a whole rose by 29.3 percent non-seasonally adjusted from December 2020 to December 2021, the statistics found.

The high gasoline prices and the inflation will likely change consumer behavior regarding shopping trips, which could be fewer and consolidated in order to save on gasoline, according to Target’s top executive.

AAA data shows that the national average gasoline prices in January have increased from December, despite the lower demand

“Typically, pump prices decline due to lower gas demand and a rise in total stocks, but continued growth in the price of crude oil has helped to elevate pump prices. As crude prices continue to climb, pump prices will likely follow suit,” AAA said last week.

By Charles Kennedy for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News