WORLD> America
High gas prices cut driving for 8th month
(Agencies)
Updated: 2008-08-14 09:21

Republican John McCain wants to expand offshore drilling, which he says said would result in lower prices by sending a message to oil traders that the United States was serious about boosting domestic oil production.

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The decline in miles traveled since last November has occurred the most in rural areas, where travel has fallen by 4 percent, compared to the 1.2 percent drop in urban miles traveled, the department detailed.

High fuel costs have the biggest effect on individuals in rural areas, who normally drive more and spend a larger share of their income on gasoline.

In response to soaring fuel prices, Americans appear to have given up their long love affair with big, gas-guzzling vehicles and are leaving them for cars that can save money at the pump.

US automakers reported that car sales in July outpaced SUV and other light truck sales by 10 percentage points, with cars accounting for 55 percent of all vehicles sold.

Trucks sales had consistently made up the majority of vehicles sold between 1997 and 2007, until rising gasoline prices encouraged consumers to switch to cars with better fuel economy.

"Hopefully, the era of the Hummer and other gas guzzlers is over," said Daniel Weiss, energy expert at the Center for American Progress think thank in Washington.

Honda Motor Corp., the industry leader in fuel efficient cars, is expanding its fleet in 2009. "Small, fuel-efficient vehicles are not short-term strategies for Honda," Richard Colliver, executive vice president of Honda America said on Wednesday at a forum in Traverse City, Michigan.

"I do think there has been a shift in consumer preference here," said Tim Evans, energy analyst for Citi Futures Perspective. "Over the intermediate to longer-term, I don't think automakers are going to risk building as many SUVs."