U.S. Gas Prices Stay Above $4/Gallon for Three Weeks, Survey Shows Changes in Consumer Fuel and Shopping Habits

U.S. national average price for 87-octane gasoline has remained above $4 per gallon for three weeks, leading to noticeable changes in consumer behavior at convenience stores and petrol stations. Goldman analysts released a new note indicating that a majority of convenience stores are seeing drivers buying less fuel and trading down in-store.

' The note covers a survey of 32,000 retail locations, which represents about 21% of convenience stores nationwide. Consumers are purchasing less fuel, downtrading within the store, and showing declining basket sizes as gas prices remain elevated at approximately $4 per gallon, Herzog stated.

'Despite the improved outlook, it appears that some consumers are already changing their behavior as gas prices remain elevated (at ~$4/gallon).

Fifty-three percent of respondents said they are already seeing changed consumer behavior with gas prices around $4 a gallon. Another 37% of respondents expect consumer behavior to shift if gas prices remain elevated.

Eleven percent of respondents said they have not noticed any change in consumer behavior. The most common pattern shifts in convenience stores were consumers buying less fuel, trading down at the pump, trading down in-store, and buying fewer in-store items. A smaller share also said customers are simply driving less because of higher gas prices, according to the survey.

Which is about 28% of all tobacco outlets. The survey showed that $4-a-gallon fuel has sparked trading down among nicotine users. Roughly 80% of respondents indicated that deep-discount cigarettes gained share in Q1.