Actual demand for gasoline has gone up over the past year even though the price has gone up substantially. In America, more than almost anywhere else, we have really long commutes. This means that most of our driving is inelastic, which means we basically have to drive and we don’t often drive for leisure. Small cars and 4 cylinder engine cars are being bought in droves these days. BMW is even bringing their one series car over from Europe to the US as well. Clark rented a Chevy Aveo in Washington D.C. and loved getting 37 miles to the gallon in it as well as the ease of parking in the downtown area.