Unprecedented Gas Demand And High Prices At The Pump

November 18, 2021 By Yiannis Tsiounis Tags: AUTOMOTIVE

Advan has been flagging an unprecedented demand in gasoline as early as February 2021. Unsurprisingly, gasoline prices have been following traffic (ie demand) at the gas stations in lockstep, since we have started tracking gas station traffic in 2016.

The graph below shows gasoline prices overlaid with Advan Miles Driven index:

Advan Miles Driven vs Gas Price

We can speculate about the reasons for the surge in demand: more people are driving to work instead of using mass transit; more are traveling by car instead of flying when possible; more are just not working or taking trips when they can; people moved out of city centers where they didn’t regularly use a car and are now driving for groceries, run errands etc. Some of these, such as migration out of city centers and lower airport traffic, can be verified with our data. But regardless of the reasons the result assively increased demand, despite increased costs at the pump.

Below the Advan Miles Driven index and gas prices on a Y/y basis:

Advan Miles Driven vs Gas Price Y/y

Advan tracks 300 indexes, measuring production and demand across all sectors, from chip, healthcare and car manufacturing to airport, port traffic and retail, hospitality, entertainment, banking, Reits and more, on a daily basis, worldwide.

Follow us on Twitter and LinkedIn.

About Advan

Advan is the leader in the financial and real estate industries, enabling participants to analyze foot traffic data across multiple sectors, including retail, hospitality, consumer services, energy, technology, healthcare, REITS, financials and others. Advan derives its datasets using multi parameter models that analyze cellphone location data crossed with curated geofenced areas.

Top tier institutional investors spanning from quantitative hedge funds to fundamental asset managers have been the main consumers of Advan’s products.