SACRAMENTO: Motorists in California purchased more gasoline in October 2014 than any corresponding month since 2007, according to state tax records, confirming the renewed growth in US fuel demand.
State gasoline consumption was 2.3 percent higher than in the same month in 2013 and 4.1 percent higher than in 2012, according to the California Board of Equalization, which collects motor vehicle fuel tax in the state.
Sales have been growing since June 2013 and the trend is expected to accelerate as motorists respond to the halving of fuel prices by purchasing larger vehicles and driving more.
Lower crude oil prices will gradually rebalance the market by slowing crude production growth and encouraging more use of refined fuels.
California’s gasoline sales have been rising for more than a year but the rate of increase accelerated in September and October 2014, coinciding with the sharp drop in pump prices.
In October, California gasoline sales hit 1.272 billion gallons, up from 1.242 billion gallons in October 2013 (link.reuters.com/vav83w).
