US consumers expect gas prices to surge 50% two years from now

Article by Andrew Christian, on February 23, 2015

Consumers in the United States are not so positive that gas prices in the country would remain low, according to a national survey by the Consumer Federation of America. The survey showed that consumers believe that two years from now, gas prices will surge 50 percent to $3.20 and 80 percent to $3.90 five years from today.

Mark Cooper, director of research at CFA, noted that consumer expectations do match the last major drop and surge in gas prices (2009-2014), adding that consumers understand that when gas goes down, it would also go up. The CFA also analyzed the last drop and surge in gas prices. In January 2009, the monthly average price of gas was at $1.84 a gallon.

In 2014, the monthly average jumped $3.36. Back in 2009, low gas prices had more consumers buy lower mileage vehicles. Five years later, these lower mileage vehicles proved to be a financial burden. In fact, a consumer who purchased a 15-mpg vehicle in 2009 would shell out $6,400 more over five years than someone who acquired a 25 mpg vehicle.

According to the CFA, at the time, a consumer could choose between vehicles with 15 mpg and 25 mpg, without moving to a different class. Cooper remarked purchasing an inefficient vehicle when gas prices are low “condemns” the consumer to wider swings in monthly costs, higher monthly peaks and an overall hike in lifetime gas costs.

CFA also compared the five-year gas costs of buying an 18 mpg vehicle versus buying a 28 mpg vehicle now. Using the average prices projected by consumers in the survey, CFA said that a buyer of an 18 mpg vehicle would spend $5,000 more on gas in the next five years than a buyer of a 28 mpg vehicle.

Jack Gillis, director of public affairs at CFA, noted that today, it has become easy to make a fuel-efficient choice within nearly every vehicle category. According to the survey, consumers wanted the gas mileage of their vehicles to be 30 mpg, compared to the 25 mpg of their current units. He said that it is no surprise that consumers want more fuel efficiency although the current gas prices are low.

Topics: united states

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016