Exhaust Note #6: Latest Fuel Price Survey Findings
The times, they are a changin'
AutoPacific has completed the latest in a long series of fuel price impact surveys. And it now looks as though fuel prices have remained high enough for long enough for buyers to have begun to change their vehicle segment preference, their engine preference and even, so some extent, their driving habits.
Fuel Prices
The reported median price paid for fuel in March, 2008 was $3.36, up from $2.83 last August and $2.63 in March, 2007, and the highest since the survey began in September, 2005.
Vehicle Segment Preference Change
When asked in which segment they would next purchase, vehicle owners indicated a significant shift, compared to what they currently own, towards Small Cars, and away from Large/Luxury Cars, SUVs, Pickups, and Minivans. Mid-Size car preference is largely unchanged. That wasn't the case six months ago!
Engine Preference Change
When asked what type of engine they would prefer in their next vehicle as opposed to their current primary vehicle, there is a marked swing towards consideration of a hybrid, and less consideration for an 8 cylinder engine. Again, the differences are much more pronounced than six months ago.
Driving Habits Changing?
Generally speaking, respondents have been reluctant to change their driving habits. But, compared to last August, more respondents say they are driving slower (40% vs 33%), combining trips (60% vs 54%), and have increased tire pressure (20% vs 15%). In March, 2008 only 27% said they had made no changes in their driving habits (vs 33% in August, 2007).
America is Changing!
Clearly it is in the national interest for the US to reduce petroleum consumption - for national security reasons, financial reasons and environmental reasons. But until recently, while respondents said that fuel prices were a problem, they also said that they had personally done little or nothing to alleviate the problem. It now appears that fuel prices have been high enough for long enough for vehicle owners to actually start significantly changing their vehicle, and engine preferences and their driving habits.
The data tell us one more thing: the real key to reducing the nation's fuel consumption may not lie in CAFE rules and regulations. Increasing the price of fuel is effective in reducing fuel consumption now, not years in the future when new technology is widely applied.
