Average Fuel Economy Rises, So You Know Gas Prices Are Going Up
Drivers aren’t getting the same deal at the pumps as they were last winter, and the gas mileage of new vehicles shows it.
Researchers at the University of Michigan say the average sales-weighted fuel economy of new vehicles hit 25.4 miles per gallon in May, the highest figure so far this year. It’s still less than the all-time high set in August 2014, but it shows not every car buyer is going for the thirstiest vehicle they can afford.
U.S. gas prices ended the month of May at an average pump price of $2.33 a gallon, having risen steadily since hitting rock-bottom ($1.70/gallon) in February. That cost is still rising alongside modestly rebounding crude oil prices.
Average fuel economy fell back into a shallow trough late last year as consumers got used to the idea of lower prices at the pump. For many, it was like the 1990s were back, and the Big Three thanked everyone for falling deeper in love with their light-duty pickups and SUVs. The year ended with an average fuel economy of 25.0 mpg
Still, the worldwide oil glut that sent crude prices plunging in 2014 didn’t erase federal CAFE targets, and that can’t be discounted as a factor in the uptick in mileage. After all, a new base Malibu (to throw out just one example) gets better mileage today than it did in a year ago.
[Image: University of Michigan]
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The data does suggest and prove fuel pricing is influencing at what people buy. What does influence fleet FE is wages and the media, ie, pricing forecasts. I do believe the US has squandered a great opportunity in raising fuel taxes masking the price increase with the low oil prices. Even if the tax was raised at the Federal level to allow more money to be ploughed into crumbling transport infrastructure. With that said I did find Florida's road infrastructure quite good and the NE in a much poorer condition.
Not true. Please hold your legislators accountable for not having a appropriate life cycle maintenance and rehabilitation schedule for your roads.
Makes sense that people aren't automatically going for monster suv beasts.... personally I own an 06 vue with the 3.5 liter and an 06 sentra with a 1.8 liter... my wife wants to drive a newer car in next 6 months, I'm thinking about which car I'd keep..... the vue us "more fun to drive", but I'm not sure I want to give the extra gas money to the crooked oil companies!!
With the stunningly low resale prices on Leafs, I'm starting to think that might be a good hedge on oil pricing (assuming you have 2 or 3 other gas powered vehicles to do stuff like haul lots of people or pickup truck duty). It appears 3 yr old / 30,000 miles specimens are literally just a few grand above deluxe golf carts. I fit what I'd think would be one of the two primary demographics: school kids retirees