With fuller wallets and lower prices at the pump, millennials are leading the charge toward the highest consumption among Americans since 2007.
AAA says motorists under 35 are nearly twice as likely to report increased driving than those above 35 because of the drop in gas prices, Chicago Tribune reports. The motoring group noted 13 percent of all drivers – 19 percent of drivers 18-34, 10 percent of those 35 and over – are putting more miles on their vehicles as a result of said decreases, which have fallen by $1 per gallon compared to last year.
Though oil companies blamed millennials for using mass transit and living in the city as two of the reasons for low demand for their offerings, they may soon have them to thank for reducing the glut in the supply chain – strengthening prices in so doing – as transportation analyst Alan Pisarski explained to the newspaper:
That millennial who didn’t even bother to get a car because they knew they couldn’t afford to buy it or the gasoline to drive it can now afford to go to the movies, afford to go to the beach, afford to go places with friends. Because of the economy coming around and fuel prices decreasing, they’re beginning to be able to afford these things again.
Demand for gasoline in the U.S. this year is expected to average 9.07 million barrels/day, compared to 8.92 million/day in 2014, as a result of lower prices at the pump. However, AAA says 17 percent believe $2.50/gallon is cheap while 39 percent claim it’s still too much; 58 percent agree $1.50/gallon is cheap.
The low prices have also affected wallets this year by adding $400 to each household’s bank account. The savings may come in handy on vacation or other long-distance travel: 6 in 10 Americans are more likely to drive 50 miles or more, with 68 percent of those under 35 making those plans compared to 57 percent 35 and over.
[Photo credit: Minale Tattersfield/Flickr/CC BY-SA 2.0]
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