Fuel Demand Increases as Economy Grows

Economic growth leads to an increase in diesel fuel consumption for truckers, according to the American Petroleum Institute.

May 24, 2011

WASHINGTON ?" The American Petroleum Institute (API) said U.S. fuel demand increased last month as economic growth fueled diesel consumption by truckers, Bloomberg reports.

Petroleum product delivery increased 5.2 percent to 19.9 million barrels a day last month from a year earlier, the API revealed in a report last week.

"Product demand is growing, led by distillate," said John Felmy, chief economist with API. "Trucking tonnage is clearly up and that??s led to a big increase in diesel demand. Growth varies by sector, because this is an uneven recovery."

Total demand for distillate fuel rose 15 percent to 4.27 million barrels a day, while consumption of ultra-low sulfur diesel increased 26 percent to average 3.42 million barrels a day.

Gasoline pump prices rose 6.6 percent last month, which slowed demand 2.2 percent to 8.91 million barrels a day from the same month last year.

"Higher gasoline prices are damping demand," Felmy said. "This is just a price reaction."

For more information on gasoline retailing and state-by-state metrics related to motor fuels, as well as videos that address common consumer questions, visit the 2011 NACS Fuels Report.

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