Larvatus Prodeo

There’s been evidence, previously reported on LP, that demand for petroleum is dropping substantially in the United States. But, unfortunately, there aren’t any public, timely statistics on Australia’s total fuel usage that I’ve seen yet. But Steven Long at PM has dug up an interesting proxy for it: total petroleum imports, which are sinking like a stone, despite a gradual declining trend in Australia’s domestic petroleum production. From the transcript of the report:

CRAIG JAMES: What we saw in May is that the amount of petroleum that we’ve imported 28 per cent lower than what it was a year ago.

Thais is the biggest fall that we’ve seen in over four years. And it certainly shows that the higher prices are having an impact on people’s behaviours.

STEPHEN LONG: And disabuses people of the notion that basically demand for petrol was non-elastic that people kept on demanding petrol no matter what the price.?

CRAIG JAMES: Well that’s right. It certainly has hit people right squarely between the eyes this time around. Most consumers, motorists would have been used to seeing a $1.40 at the petrol sign boards, but all of a sudden it becomes a $1.50 or $1.55.

Continue reading ‘Fuel demand is elastic - Australian edition’