As petrol prices rise, US car use declines

With The rise of oil In recent times and with the continuous increase in petrol, American drivers have failed Riding in a carAccording to data analysis firm Inrix.

In Lifting Released last Thursday (17), car travel was down 2% in the period from February 27 to March 6, 2022 – compared to the previous week. The most significant reductions occurred in the Midwest and Southern States, while increased in the Northeast and West – precisely where the two major cities of the country, New York and Los Angeles, are located.

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The states of Kansas and Missouri had the largest reductions in the U.S. Midwest, respectively: 14% and 11%. There was also a decline in car travel in states with higher average travel time. These are New Mexico (-1.8%), Mississippi (-3.2%), Wyoming (-8.2%), Alabama (-3.3%) and Tennessee (-3.7%) – to list the five federal units with the longest average travel time.

Negative impact on the US Midwest

Higher petrol prices will hit the U.S. Midwest region, which is highly dependent on agriculture, in particular. This is because in these places, passenger cars not only need to buy fuel, but also farm equipment.

In the United States, fuel accounts for about 5% of the total cost to farmers. Margin increases on petrol or diesel and prices of basic commodities such as maize, wheat and soybeans have already begun to rise. Diesel oil, in particular, is essential for planting, harvesting, and exporting to market.

Currently, a gallon of petrol costs US $ 4.28 (approximately R $ 21) in the United States. Until the end of the last decade, the US market with a value of US $ 3 per gallon served as a critical point for car travel. At that time, step Market Consulting MaritzCXThis is the “magic number” for petrol prices in the country.

Key Image Credit: Kckate16 / Shutterstock

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