Gasoline spike fuels surge in bicycle sales

NEW YORK (Reuters) – A spike in gasoline prices is fueling
what could be the biggest year for U.S. bicycle sales since the
Arab oil embargoes more than three decades ago, a leading bike
association said on Wednesday.

“For bicycles, high gasoline prices are a good thing,” said
Tim Blumenthal, executive director of Bikes Belong, a national
coalition of bicycle suppliers and retailers.

U.S. gasoline prices struck an all-time record above $3 a
gallon after Hurricane Katrina hit the Gulf Coast, shutting
several oil refineries, though prices have eased slightly since
then, according to government surveys.

“People’s eyeballs pop out when they see the gas pumps and
they say they need to do something. One of the options is
biking,” Blumenthal said.

“Independent dealers, specialty sporting stores and big-box
stores have told us that since August 1, bicycle sales have
jumped dramatically,” he said.

Gasoline prices have been on the rise for months due to
high crude prices and a crunch on global refining capacity, and
higher summer demand along with the recent hurricanes have
pushed them to new peaks.

Close to 20 million bicycles are likely to be sold this
year, approaching the record hit after a cut-off of Arab oil
triggered gasoline lines in the United States.

“It should be close to 20 million units. If you look back
historically, the three best years for bike sales were 1972,
1973, and 1974,” Blumenthal said.

Last year’s U.S. bicycle sales were just under 19 million.

Travel and motorist group AAA said it has noticed Americans
are looking for ways to cut their fuel consumption by using
more fuel-efficient vehicles, or by using public transportation
and bicycles.

“AAA is beginning to think that consumers may finally have
tired of expensive gasoline,” said AAA spokesman Geoff
Sundstrom.

U.S. fuel demand over the past four weeks has fallen nearly
3 percent below last year’s levels, the U.S. government said on
Wednesday.

Demand for gasoline averaged 8.8 million bpd, or 2.6
percent below last year, while distillate demand averaged 3.9
million bpd, or 3.8 percent below last year, the Energy
Information Administration said.