Gasoline Consumption Rises in Response to Price Drops – Noticelle – The Truth as It Happens – Puerto Rico News – Noticelle
Gasoline purchases increased 7.6% while prices fell more than 14%.
Gasoline consumption in Puerto Rico increased by 7.6% during 2023, in apparent response to the drop in fuel prices, which registered a drop of more than 14%.
The most recent data from the Department of Consumer Affairs (DACO) (prices) and the Department of the Treasury (consumption) are up to October 2023, but this pattern of increase in consumption was consistent until February of the most recently ended year.
According to the data, gasoline consumption was 74.3 million gallons last October, a 3.3% increase from 71.9 million gallons consumed in the same month in 2022.
Cumulative consumption during those 10 months of 2023 was then 753 million gallons, 53 million, or 7.6%, more than was consumed in the same period in 2022.
Consumption for the first four months of the current financial year 2023-2024 (July to October) maintained the same upward trend with 304.6 million, up 24.7 million from the previous year, an increase of 8.8%.
RELATED STORY: The month of October began with a drop in gasoline prices
Price drop
This increase in consumption was matched by a 14.6% drop in the average price of gasoline.
It was estimated at $3.48 per gallon for the 10 months, which represents a favorable amount compared to the previous year’s average price of $4.08. The data for the month of October was an average price of $3.43 per gallon, a decrease of 10.4% compared to the $3.83 reported for the same month in 2022.
The average drop in cents in October figures was 40.2; 40.5 for regular gasoline and 39.76 for premium or super gasoline. However, the biggest decline was in diesel gasoline with -74.78 cents year-over-year.
This decline in the average price of gasoline and related regular and premium prices is consistent with the United States Energy Information Agency’s estimate of an average decline for that country in 2023, which was 43 cents per gallon.
“Relatively lower gasoline prices primarily reflect lower oil prices in 2023 compared to 2022 and higher gasoline inventories in the second half of 2023,” the agency’s report noted.
For comparison, it turns out that the average annual price of gasoline in 2022 was the highest since 2014, when adjusted for inflation.
RELATED STORY: DACO cautions against possible hike in gasoline prices
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