High gasoline prices lead to reduced driving and higher transit use in U.S.

Gasoline prices in the United States have risen above $4.50 per gallon since the Iran war began in late February. This represents an increase of about 40 percent compared with prices before the conflict started. U.S. drivers have paid $45 billion more for gasoline and diesel this year than last year.

A late April survey by ABC News, the Washington Post, and Ipsos found that 44 percent of U.S. adults have cut back on driving because of higher fuel costs.

Changes in transportation habits Cities from Cincinnati to Los Angeles have recorded higher public transit ridership. Sales of used electric vehicles and hybrid cars have increased over the past two months. Some people have replaced car trips with bicycles or scooters, while Amtrak has reported more passengers than usual.

Many Americans continue to own vehicles but reduce fuel use through carpooling, combining errands, or working remotely more often. The country’s highway and suburban layout makes switching to other transportation difficult for some residents.

Global demand effects The International Energy Agency reported last week that global oil demand is expected to contract by 420,000 barrels per day this year. The agency attributed the decline to reduced consumption in Asia, where factories in Japan cut naphtha use by 25 percent year-over-year.

Gasoline demand in South Korea fell about 5 percent as pump prices rose. Pakistan, the Philippines, and Sri Lanka introduced four-day work weeks to limit commuting. South Korean President Lee Jae Myung called for a faster shift to renewable energy, stating that continued reliance on fossil fuels would put the country’s future at serious risk.

Long-term outlook Daan Walter of the think tank Ember said the current crisis could mark the peak year for oil demand if Asian countries accelerate electrification. Kenneth Gillingham of Yale University said sustained price shocks make behavioral changes more likely to persist.

Susan Handy of the University of California, Davis, noted that major disruptions can prompt lasting shifts in travel habits when people discover they prefer alternatives such as biking or public transit.