Gas Demand Drops 4 Percent in September

Washington DC October 21, 2005; The AIADA newsletter reported that according to a report issued yesterday by the American Petroleum Institute, demand for gasoline fell almost 4 percent in September from the same time last year, marking the largest year-over-year drop in a decade as deliveries fall and refineries continue to be out of operation in the nation’s Gulf Coast, reports The Washington Times.

U.S. crude production dropped 22 percent to 3.95 last month from September 2004, the lowest level since 1943. The Institute cited high pump costs as a large part for the drop in demand. "Motorists apparently found ways to manage fuel use and travel more efficiently in the face of higher September gasoline prices following hurricanes Katrina and Rita striking along the U.S. Gulf Coast," according to the report.

On Thursday, the national average price per gallon of regular unleaded hit $2.69, down from $2.70, and is now almost 12 percent lower than the record high of $3.05 in the days just following Hurricane Katrina.