Fuel Efficient Cars Cause Gas Sales to Plummet in the U.K.

According to the Automobile Association, the drop in fuel sales translates to about 35 days of lost sales for U.K. retailers.

April 09, 2013

LONDON – Rising oil prices and consumer demand for more fuel-efficient vehicles has sent fuel sales spiraling downward in the U.K. over the past five years, The Guardian reports.

Total sales of gasoline (including diesel) from supermarkets and non-supermarket forecourts fell from 37.6 billion liters in 2007 to 34.2 billion liter last year, according to data from the Automobile Association (AA).

The data also reveals a shift in fuel preferences, with sales of gasoline down from 22.9 billion liters to 17.4 billion liters, while diesel sales increased from 14.8 billion liters to 16.7 billion liters.

The AA said that total fuel sales are now off 9.3% since 2007, which translates to roughly 35 days of lost sales for retailers.

"Greater take-up of diesel cars and smaller petrol vehicles has contributed to this overall decline in U.K. fuel sales over the long term," said AA president Edmund King. "However, soaring pump prices have taken a huge toll on petrol sales more recently — during the 10 pence-a-liter price surges last March and October, pump sales of petrol fell by up to 5%."

King said the trend was likely to continue as fuel prices are expected to increase. "The trouble is that, with global economic recovery, the stock market will predict greater oil and fuel demand and push up commodity values accordingly," he said.

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