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The demand for retail gasoline declined 2 percent from last year as the average price of gas rose above an average of $4 a gallon. The new figures were released by MasterCard Advisors. Researchers with the company state that the high cost is driving down consumption at a normally peak time of year.

The average retail price for gas rose 3 cents to a record $4.07 during the week ended June 20. Since the same time last year, gasoline demand was down roughly 2 percent, while gasoline demand last week was 2.7 percent. Despite the reduction, Americans still pumped more gasoline last week than the week before, reflecting the typical seasonal increase from summer travel. Despite the trend, the 2% decline in use from last year indicates that Americans are altering their driving habits.

Meanwhile, a meeting of oil producing nations and a pledge by Saudi Arabia to increase output has not led to a decrease in the price of oil. During the meeting, the US and other nations argued that oil production has not kept up with increasing demand from China, India and the Middle East. But Saudi Arabia and other OPEC countries say there is no shortage of oil and instead blame financial speculation and the weak US dollar.
After the meeting, prices for oil jumped $1.19 to close at $136.55 a barrel.