Americans will drive 125 billion fewer miles in the coming year, according to Quality Planning, a company that validates policyholder information for auto insurers.
In a survey released today (see link below), Quality Planning found that while discretionary driving will decrease, it likely will not result in lower insurance premiums. But will using less oil mean a drop in gas prices?
Here’s how the company figures it:
Assuming gas prices remain at current levels, the firm projects a mileage decrease of 4 to 5 percent over the next 12 months. With approximately 250 million passenger cars on the road, this equates to roughly 125 billion fewer miles driven, or 500 miles per year per driver. At an average of 20 miles per gallon, this will result in a reduction in gasoline consumption of 6 billion gallons, equivalent to 307 million barrels of crude oil (a barrel of crude oil yields approximately 19.5 gallons of gasoline).
To read the survey, click this PDF: