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GasBuddy News Article

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U.S. Gasoline Demand Falls 2.7%, MasterCard Says

Bloomberg -- June 24 (Bloomberg) -- U.S. gasoline demand fell 2.7 percent last week, the ninth consecutive decline, a sign motorists are cutting back on vacation plans as pump prices touch records, a MasterCard Inc. report today showed.

Consumers purchased an average 9.45 million barrels of gasoline a day in the week ended June 20, down from 9.71 million a year earlier, MasterCard, the second-biggest credit-card company, said in its weekly SpendingPulse report.

The drop in demand came with prices at the pump up 36 percent from a year ago, according to the report. Prices have surged amid a doubling of crude oil, which accounts for about 73 percent of the cost of gasoline.


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Submitted Jun 25, 2008 By: JT
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REPLIES (newest first)
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magnumCA
Champion Author Los Angeles

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Message Posted: Jun 26, 2008 9:34:27 PM

are you shocked
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TwoWheelRider
Sophomore Author Montgomery

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Message Posted: Jun 26, 2008 1:45:42 PM

CosmicP "MC's report is based only on their transactions and is not scientific or meaningful."

Exactly!!!
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MetroSexual
Champion Author New Hampshire

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Message Posted: Jun 26, 2008 12:21:05 PM

Okay -- MasterCard isn't accepted at ARCO, one of the largest distributors of gasoline in the west. In California, where one out of eight people now lives, ARCO stations are plentiful. So, the numbers are probably really skewed since ARCO prices are usually among the lowest, and consumers are scrambling to get the best deal.
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tomok
Champion Author Portland

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Message Posted: Jun 26, 2008 12:11:00 PM

gasoline demand falls but the price goes up....
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glazarides
All-Star Author Akron

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Message Posted: Jun 26, 2008 11:49:14 AM

No surprise to me.
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ramshot412
Champion Author Riverside

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Message Posted: Jun 26, 2008 11:00:30 AM

"The sky is falling!"

That's okay. I got my pith helmet on.
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Mr.Dirt
Champion Author Albany

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Message Posted: Jun 26, 2008 10:50:35 AM

and the price still goes up
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tags610
Champion Author Lincoln

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Message Posted: Jun 26, 2008 10:41:45 AM

The sky is falling!
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kingdick
Champion Author Minnesota

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Message Posted: Jun 26, 2008 10:39:49 AM

-----------------------------------
Who would believe a conniving gouging mastercard
-----------------------------------
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Terryforegolf
Champion Author Lansing

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Message Posted: Jun 26, 2008 10:33:51 AM

Took a long weekend and camped. Camp ground was 2/3 full at best. Last year it was packed. Gas is definately hurting the tourism business.
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Grampoo46
Rookie Author Syracuse

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Message Posted: Jun 26, 2008 10:33:51 AM

This is a surprise? Good news reporting.... Next they'll make a big deal of Truck & SUV sales dropping and small car sales rising. DUH!
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hangupanddrive
Champion Author Michigan

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Message Posted: Jun 26, 2008 10:32:13 AM

Conservation never was a bad thing. High inflated pricing is still another.
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CosmicP
Champion Author Dallas

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Message Posted: Jun 26, 2008 10:28:10 AM

MC's report is based only on their transactions and is not scientific or meaningful.
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esquared
Champion Author Oklahoma City

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Message Posted: Jun 26, 2008 10:27:54 AM

I'll continue to use my Discover card, thank you.
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roydarecker
Champion Author Minnesota

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Message Posted: Jun 26, 2008 10:25:56 AM

glad to hear it.
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ardmoretoday
Champion Author Oklahoma

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Message Posted: Jun 26, 2008 10:25:33 AM

So if it fell 2.7% then gas should go down at least 11 cents / gallon.
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woos777
Champion Author Washington

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Message Posted: Jun 26, 2008 10:23:24 AM

Yes, but stealing gas is up.
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acknot
Champion Author Seattle

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Message Posted: Jun 26, 2008 10:21:08 AM

We can't afford to drive.
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radicale
All-Star Author Calgary

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Message Posted: Jun 26, 2008 10:20:33 AM

Use is down and there is still a shortage?
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REVLAW
Champion Author San Antonio

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Message Posted: Jun 26, 2008 10:18:12 AM

Yesterday's news. Perhaps later.
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mistymiss
Champion Author Fresno

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Message Posted: Jun 26, 2008 10:15:38 AM

It's dropped more at my house then 2.7 %, much more! So has everything thing else! Greedy gas companies!
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rbdesigns
All-Star Author Modesto

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Message Posted: Jun 26, 2008 10:15:36 AM

It's pretty bad when you have to run your credit card through twice to fill up!
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domer2
Champion Author Gary

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Message Posted: Jun 26, 2008 10:13:17 AM

need a mortgage instead of plastic to fill up
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Rageagainsttm
Champion Author Tampa

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Message Posted: Jun 26, 2008 10:12:10 AM

dah of course its dropping people are trying to drive less
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bow22ler
Champion Author Houston

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Message Posted: Jun 26, 2008 10:11:40 AM

drill here now
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nyacoub1
Champion Author Chicago

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Message Posted: Jun 26, 2008 10:11:17 AM

why should we listen to mastercard?
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switz1873
Sophomore Author Ohio

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Message Posted: Jun 26, 2008 10:10:16 AM

Good.
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pug07rb
Sophomore Author Alabama

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Message Posted: Jun 26, 2008 10:09:51 AM

Why would we listen to a credit card company??
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Chazzer
Champion Author Nevada

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Message Posted: Jun 26, 2008 10:09:33 AM

Not for long ... however!
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rbdesigns
All-Star Author Modesto

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Message Posted: Jun 26, 2008 10:08:44 AM

I guess they knew what they were doing a while back when they put a bank machine at the gas pumps. now we really need it to fill up because I don't like to carry that much cash!
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RochBear
Champion Author Minnesota

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Message Posted: Jun 26, 2008 10:08:14 AM

Less people are using Master card for gas purchase. Now actual demand has dropped too. This is good. There must be a silver lining to this storm cloud.
It will take many years for the current fleet of cars to die, and be replaced with higher efficient cars. But as people drive less, drive less agressively, and slowly replace the gas hogs with gas sippers, actual demand will drop.
However, the world demand is flat to still increasing. And oil is a global commodity. Therefore, don't expect the price at the pump to drop.
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r651981
All-Star Author Columbus

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Message Posted: Jun 26, 2008 10:07:30 AM

Even with reduced U. S. demand, third world economies are starving for fuel. Only when we are Energy Independent will the U. S. avoid this critical National Security threat.
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murdershewrote
Champion Author Riverside

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Message Posted: Jun 26, 2008 10:05:50 AM

someone noticing this?..big oil?..goverment?
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bargainhunterTX
Champion Author Austin

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Message Posted: Jun 26, 2008 10:04:33 AM

I don't use MC at the pump... Of course, I'm also not driving as much as before either...
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kidmikey37
All-Star Author Texas

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Message Posted: Jun 26, 2008 10:02:56 AM

just bring cash and cut someone out of the greed
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eaglev
Champion Author Oklahoma City

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Message Posted: Jun 26, 2008 10:00:27 AM

World demand is up so when we cut back the rest of th world buy it. we need to drill here, drill now and build now.
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PKVol
Champion Author Nashville

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Message Posted: Jun 26, 2008 9:59:48 AM

Does this reduction by MasterCard take into account the number of stations that have stopped taking credit cards because of the unreasonably high fees the card companies charge the station owners for processing those payments? If I was a merchant and I was giving up $0.08 - $0.12 per gallon I sold to the credit card companies, I'd stop accepting them too.
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HawaiianGuy
Champion Author Idaho

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Message Posted: Jun 26, 2008 9:57:09 AM

From MasterCard, eh? I just read the other day where more and more stations are taking Cash Only because the credit card fees, in some cases, are costing them MORE than they're making in profits. That's downright wrong. Another example of unbridled greed.
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dieselfreak
Champion Author Toronto

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Message Posted: Jun 26, 2008 9:52:49 AM

MasterCard cannot possibly measure this accurately. I have a Mastercard, but sometimes use another card, and sometimes use cash.
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Vin63
Veteran Author San Bernardino

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Message Posted: Jun 26, 2008 9:47:50 AM

With all of the reports and statistics confirming that demand is down, it's interesting how prices keep increasing. Let me see if I got this right...

Demand is high, prices increase
Demand is low, prices increase

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copperhead8
Champion Author Boston

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Message Posted: Jun 26, 2008 9:45:35 AM

makes sense
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ashleybro
Veteran Author Indiana

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Message Posted: Jun 26, 2008 9:44:42 AM

what does mastercard have to do with gas? except that is the only way we can afford gas anymore. putting it on mastercard.
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KellysDad
Champion Author Jackson

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Message Posted: Jun 26, 2008 9:43:33 AM

The monthly MasterCard press release...
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brogan56
Champion Author Colorado Springs

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Message Posted: Jun 26, 2008 9:43:05 AM

Demand falls 2.7%, prices rise 5%, where is the disconnect here...
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rod1965
Champion Author Portland

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Message Posted: Jun 26, 2008 9:41:12 AM

people are paying with cash more than their credit cards because it costs less.
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scrounger
Champion Author Vancouver

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Message Posted: Jun 26, 2008 9:40:37 AM

and of course.......mastercard is an infallible source
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jrnascar
Veteran Author Dayton

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Message Posted: Jun 26, 2008 9:40:15 AM

Of course demand is dropping. Who can afford these prices?
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jetsfan6
Champion Author New Jersey

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Message Posted: Jun 26, 2008 9:36:54 AM

comment, murmur, comment, murmur.....
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Sealer
Champion Author Charleston

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Message Posted: Jun 26, 2008 9:34:57 AM

Of course people use less of any product when the price goes up.
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Cerberus2k
Champion Author Phoenix

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Message Posted: Jun 26, 2008 9:31:27 AM

Healthcare, food, & gas prices are increasing but wages are not. Something has to give.
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