(John Kemp is a Reuters market analyst. The views expressed are
By John Kemp
LONDON, Sept 23 Gasoline sales to U.S. motorists
rose by more than 5 percent in July compared with the same month
a year before, according to the U.S. Energy Information
Gasoline sales are rising at the fastest year-over-year
rates for more than 14 years as demand surges.
Continued economic expansion, rising employment and cheaper
fuel are putting a record volume of traffic on U.S. roads as
well as encouraging motorists to upgrade to larger and more fuel
Gasoline sales were up 5.1 percent in July 2015 compared
with July 2014, according to the EIA's Prime Supplier Report
published on Tuesday (link.reuters.com/pyv65w).
Sales for the first seven months as a whole were up 4.4
percent compared with 2014 (link.reuters.com/myv65w).
The Prime Supplier Report is based on a census of around 200
firms that produce, import or transport across state boundaries
selected fuels and sell the products to local distributors,
local retailers or end users.
Prime Suppliers account for substantially all fuel delivered
to local distributors, retailers and end users in the United
States so the census provides a comprehensive picture of demand.
Fuel consumption is being boosted by more traffic on the
roads. Vehicle-miles travelled were up 3 percent in the first
half of the year compared with 2014, according to the Federal
Motorists are also opting for larger vehicles. Car sales
fell almost 3 percent in the first eight months of 2015 but
sales of light trucks, which include sport utility vehicles,
surged by 10 percent, according to WardsAuto.
Light trucks typically use nearly 40 percent more fuel for
the same journey, according to U.S. government statistics, so
the changed sales mix is boosting consumption ("Summary of fuel
economy performance" 2014).
Fuel sales in California, where gasoline prices have jumped
sharply as a result of refinery problems, have lagged the rest
of the nation.
Gasoline sales in the state for the first seven months rose
by 4 percent, compared with a nationwide average of 4.4 percent.
In North Dakota and Oklahoma, where state economies have
been hit by the downturn in oil and gas drilling, fuel sales
have actually fallen compared with 2014.
But for the country as a whole, prime suppliers' gasoline
sales volumes are rising at the fastest year over year rate
since 2001 and before that the late 1980s (link.reuters.com/ryv65w).
(Editing by David Evans)