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London — According to data, drivers around the world are tolerating record high prices for road fuel. This is because mobility currently outperforms other household spending.
High prices have not yet exceeded the driver’s pain threshold in major demand centers. But things could change as U.S. drivers have to pay more than $ 6 per gallon and oil prices above $ 140 per barrel can happen by the end of the year, Ana said. The list states.
Consumers are changing their driving habits, for example, some choose not to fill their tanks, but the data show that this has not yet put pressure on overall fuel demand.
European Union drivers rarely pay more than € 1.60 per liter to fill up diesel and petrol vehicles, and in most cases, based on data from the European Commission dating back to 2005. , Well below $ 1.50.
However, since Russia’s invasion of Ukraine in late February, EU diesel and gasoline prices have exceeded $ 2 per liter more than once, and gasoline prices have remained strong at that level.
So far, European drivers haven’t seemed upset.
Traffic in Rome and London last week easily exceeded the pre-coronavirus blockade level at the same time, but drivers in Paris went out on the road in the same number as in 2019, crowded navigation data group TomTom. The data shows.
Traffic congestion in Madrid has increased in recent weeks, but like Berlin, it is still below the congestion level in 2019. The data from TomTom shows.
According to the Motorbody RAC Foundation, on June 8, UK pump gasoline prices hit a record high of £ 1.8073 ($ 2.19) per liter, and diesel hit a record high of £ 1.8657.
This could be the highest price since the records issued by the House of Commons, adjusted for inflation, began over 100 years ago.
A spokesman for the German Gas Station Association TIV said fuel demand was sluggish despite rising prices.
But he said some driving behaviors have changed. “”[People] A little less, I stopped refueling for 30 euros ($ 31.34) or 40 euros, and sometimes increased carpooling. “
$ 6 a gallon?
In the United States, AAA data show that for the first time on Saturday, gasoline averaged above $ 5 per gallon.
According to TomTom data, US drivers in New York and Los Angeles have refrained from traveling compared to 2019. However, Patrick DeHaan, an analyst at GasBuddy.com, who tracks retail fuel prices in the United States, said demand has not yet been disrupted.
When asked which price standard could cause a decline in consumption, Dehan said, “I think it will be $ 5.50, but I think it will certainly be $ 6. [a gallon]”It’s up from the current $ 5.
Independent analyst Paul Sanky estimated that US gasoline demand would decline at $ 6 per gallon, based on consumer behavior in 2008, when oil prices last peaked at a major peak. ..
In Asia, traffic in Tokyo, Jakarta and New Delhi is above pre-pandemic levels, according to TomTom data.
Retail prices for gasoline and diesel in China are currently at record highs. Tyranny measures in major metropolitan areas in recent months have significantly reduced oil demand.
In Japan, due to large subsidies, current prices are below the peak reached in 2008.
India’s gasoline and diesel prices have cooled after the government extended subsidies at the end of last month. Still, prices are just below the record levels seen in May.
However, according to data from the Government of India, fuel consumption in May was 18.27 million tonnes, up 23.8% year-on-year.
Pain threshold
Analysts say oil prices still have a long way to go before meaningful demand disruptions begin to balance the market.
“The slowdown in consumption and alternatives is still in its infancy … in the summer months, pain thresholds will begin to take hold,” said Ehsan Khuman, an analyst at MUFG Bank.
Benchmark oil prices are above $ 120 a barrel, but about $ 20 below the level Khuman expects to disrupt demand.
CEO of global commodities trader Trafigura said oil prices will soon reach $ 150 a barrel this month and could rise further this year.
The Epoch Times contributed to this report.
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