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Americans Drive 10 Billion Fewer Miles in Last Year

Record drop in driving leads to losses in highway funds

July 29, 2008

Wonder why the pump price of gasoline is going down? Could be the marketplace.

New federal data show Americans drove 9.6 billion fewer vehicle-miles traveled in May 2008 than in May 2007. According to the Federal Highway Administration, that's the largest drop in any May, which typically reflects increased traffic due to Memorial Day vacations and the beginning of summer, and is the third-largest monthly drop in the 66 years such data have been recorded.

Three of the largest single-month declines -- each topping 9 billion miles -- have occurred since December. However, there is a downside to this, according to Secretary of Transportation Mary E. Peters. While it's true consumers are buying less gasoline, they are also paying less in gasoline taxes.

"By driving less and using more fuel-efficient vehicles, Americans are showing us that the highways of tomorrow cannot be supported solely by the federal gas tax," Peters said. "We must embrace more sustainable funding sources for highways and bridges through more sustainable and effective ways such as congestion pricing and private activity bonds."

Vehicle miles traveled on all public roads for May 2008 fell 3.7 percent from May 2007, marking a decline of 29.8 billion miles traveled in the first five months of 2008 than the same period a year earlier. This continues a seven-month trend that amounts to 40.5 billion fewer miles traveled between November 2007 and May 2008 than the same period a year before, she said.

As Americans drive less and rely increasingly on mass transit, carpooling or other options, the federal Highway Trust Fund receives less revenue from gasoline and diesel sales -- 18.4 cents per gallon and 24.4 cents per gallon, respectively.

"Less driving means less money for the Highway Trust Fund," said Acting Federal Highway Administrator Jim Ray. "The status quo cannot and will not work in the 21st century."

According to AAA, the government's Oil Price Information, Service and Wright Express, the average nationwide price for a gallon of regular gasoline is $3.941 today, down 1.7 cents from yesterday and a drop of almost 14 cents from a month ago.

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