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The Recent Trends in Gasoline Consumption Essay (Article)

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Updated: May 23rd, 2020


Gasoline refers to combustible organic compounds used in engine ignition. Gasoline normally exists in liquid form termed as petrol. Normally, it consists of organic compounds of about 10 carbon elements. Gasoline is vital to economic activities of any given country (Clayton, 2012). This is due to the importance of the transport system in the furtherance of trade activities as well as provision of employment access. Thus, gasoline consumption is higher in areas that are more business centered and economically stable. The transport system has a direct link to growth of regional, national and international markets resulted from quick access to health facilities, learning institutions, and employment services. Nonetheless, transport systems lead to ecological risks such as pollution along with social costs that negate national productivity. This results to negative human gratification and destabilizes the activities in urban areas. Gasoline degrades human life through pollution, road carnage, high energy usage, obstructions, and social unjustness (Jaja, 2010). This paper discusses the recent trends in gasoline consumption, pricing, and demand as well as supply variations.


The article by Clayton (2012) acknowledges that gasoline consumption rate in united states has been low in the past, but positively responding to the economic conditions. Although low consumption of gasoline is meant to save cost, the elevated need for transport sector proved impossible (Clayton, 2012). On this note, transport system is considered to account for about 25% of global energy consumption while also accounting for roughly 55% of the oil demanded annually (Jaja, 2010). This is because transport system highly depends on petroleum and oil products such as gasoline. However, the increased consumption rate leads to economic saddle and emission of gases that lead to greenhouse effects in the global atmosphere.

Gasoline consumption rate in the transport sector is about 75% with the households accounting for the remaining share. The consumption rate is high in highways due to large numbers of personal and commercial vehicles transporting goods and people around the economic zones (Jaja, 2010). The change in gasoline consumption is highly affected by government activities such as subsidized and managed prices of energy products. Gasoline consumption is reduced by the increased use of new vehicle. Conversely, the application of power generators to provide energy has greatly been made possible because of reduced gasoline prices.

The increase in gasoline consumption trends is also resulted by high usage of old vehicles, poor roads along with poor road mapping and construction. In addition, economic development and increased level of activities raise gasoline consumption rate due to the support services required to maintaining a growing economy. This shows a high connection between population growth and trade along with industrial action and energy products demand (Clayton, 2012). Economic expansion drives growth in production, which calls for the transportation of raw materials to manufacturing locations along with the transportation of finished products to the market.

Raised economic activities meliorate household incomes, which improve their livelihoods. This gives rise to the desire for more personalized transport systems (Radchenko & Shapiro, 2011). As a result, high incomes increase individual transport needs and thus raise gasoline consumption rate. Economic stability and growth enhance personal incomes and satisfaction that increase the demand for cars and, therefore, increase energy uptake. Large populations demand improved transport system and services, which they use to go to their workplace. Population size largely determines the infrastructures and urban means of transport developed in a country.

In this regard, it is noted that minor regions that are incapable of sustaining a great choice of services along with facilities might compel occupants to travel longer lengths with the intention of accessing the required services. High gasoline consumption rates are largely allied to low population regions while dense metropolises lead to lesser gasoline usage per head. However, gasoline consumption varies according to the number of vehicles and the gasoline content of each (Clayton, 2012). Utility denotes the level of contentment obtained from the use of a product. Gasoline usage reduces the cost of producing and transporting products as well as reduced cost cuts for electricity usage in manufacturing. Minimized production cost increases personal as well as national wealth, which is used to create more job opportunities and fund projects (Blundell, Horowitz, & Parey, 2012). The created employment opportunities improve the living standards of the society and hence bring about general satisfaction (Radchenko & Shapiro, 2011). This, therefore, acts as a motivator for more activities that require the use of vehicles that consume gasoline. If the supply of gasoline remains constant, the increased demand for the product will lead to higher prices due to increased competition.


This article acknowledges that gasoline is an essential product in manufacturing activities along with the transportation of raw material and finished goods; thus, gasoline price is not vulnerable to demand and supply (Jaja, 2010). Therefore, if supply of gasoline is not increased in a growing economy, this could shift the price of gasoline upwards from the equilibrium price. The demand could be shifted greatly by the economic activity levels. However, if demand remains constant, supply could increase due to favorable production costs while reduced supply could be accounted by lack of raw materials along with unjust legal requirements. Increased level of gasoline supply saturates the market with the product and, therefore, results to a reduction in prices below the equilibrium price level (Clayton, 2012). In my own opinion, the demand for gasoline is price inelastic. This implies that gasoline does not have close substitutes and, thus, consumers do not vary their consumption with price change (Blundell, Horowitz, & Parey, 2012).


Blundell, R., Horowitz, J. L., & Parey, M. (2012). Measuring the price responsiveness of gasoline demand: Economic shape restrictions and nonparametric demand estimation. Quantitative Economics, 3(1), 29-51.

Clayton, M. (2012). Americans’ trend line on gasoline: Use less, spend more. ANTARA News.com. Web.

Jaja, C. Y. (2010). Recent Trends and Patterns of Gasoline Consumption in Nigeria. Africa Development, 35(3), 159-177.

Radchenko, S., & Shapiro, D. (2011). Anticipated and unanticipated effects of crude oil prices and gasoline inventory changes on gasoline prices. Energy Economics, 33(5), 758-769.

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