THREE DOLLAR GAS

Nothing to say. Just read the story and look at the pictures.

$3 Dollar Gas Won’t Kill Summer Travel
Hil Anderson, May 8, 2007 (UPI)

WHO
U.S. drivers/consumers

WHAT
Gasoline prices are expected to be more than $3/gallon this summer, an all-time high, but are NOT expected to significantly discourage demand.

WHEN
$3.07/gallon national average during the May 5-6 weekend.

WHERE
The US, nationwide.

WHY
- A May 2 Civil Society Institute survey: 72% of Americans expect $3.50/gallon this summer; 51% "probably" or "definitely" will reduce summer or Christmas holiday travel. But a Nationwide Mutual Insurance survey (RV, motorcycle, travel trailer and motor boat owners) survey found some respondents said gasoline would have to top $4 per gallon before they would curtail travel. Only a slowing economy would alter consumer demand.
- Current high prices are explained in part by planned maintenance shutdowns/glitches at U.S. refineries (expected to stabilize by Memorial Day) plus consumer expectations of price surges.

QUOTES
- Mitch Roggemann, Nationwide Mutual Insurance: “In fact, enthusiasts say gas would have to cost nearly twice as much before they would stop using their vehicles…This is reflective of the fact that close to 70 percent of all (owners) use time spent on their vehicles as an escape from everyday life."
- Carol Thorpe, Auto Club of Southern California: "This is the fourth year in a row that gas prices have set new record highs in May…About the only comfort that motorists can take from history is that prices generally have dropped every summer after reaching their record prices in May."
- Graham Hueber, Opinion Research Corp.: "The findings about expected cuts in summer and end-of-year travel plans, as well as the expectation of reductions in general consumer spending, must be viewed with real concern…Clearly, the idea that Americans are just going to accept higher gasoline prices with no real reaction does not appear to be well founded."