The effect of gasoline prices on the demand

2. Muhammad Ghani
From
GulBerg
Peshawar Cantt
 BBS (First semester)
 Banking and Finance Group
 Institute of Management Sciences

4. Factors That Affect Transport
Demand
 Demographics
 Commercial Activity
 Transport Options
 Land Use
 Demand Management
 Prices

5. Demographics
 Number of people (residents, employees and
visitors)
 Employment rate
 Wealth/incomes
 Age/lifecycle
 Lifestyles
Different types of people have different travel
demands. Travel, particularly automobile travel,
tends to increase with employment and wealth.
Walking, cycling and public transport demand tend
to be higher for people who are younger, older,
poor have impairments, are immigrants, enjoy
exercise, and live in urban areas.

6. Commercial Activity
 Number of jobs
 Business activity
 Freight transport
 Tourist activity
Commercial (business) activity has special travel
demands, including heavy freight transport, local
deliveries, service vehicles (plumbers vans and
utility trucks), business travel, and tourist travel.
This type of travel tends to have high value and
may require special vehicles, including rail, large
trucks and buses, delivery fleets, and air travel

7. Transport Options
 Walking
 Cycling
 Public transit
 Ridesharing
 Automobile
 Taxi services
 Delivery services

8. Transport Options
The quality of transport options affects
travel activity. Improving walking and
cycling conditions, and public transit
service quality, tends to increase use of
these modes and reduce automobile
travel, although the relationships are
complex.

9. Land Use
 Density
 Mix
 Walk ability
 Connectivity
 Transit service proximity
 Roadway design

10. Land Use
Land use (also called built environment
or urban design) factors such as density,
mix, roadway connectivity, building
design and parking supply can affect
transport demand. Per capita vehicle
ownership and travel tend to be higher
in rural and automobile-dependent
suburban areas, while walking, cycling
and public transit travel tend to be
higher in urban areas.

11. Demand Management
 Road use prioritization
 Pricing reforms
 Parking management
 User information
 Promotion campaigns

12. Demand Management
Transportation demand management (also
called mobility management) refers to
various policies and programs specifically
intended to affect travel activity, in most
cases, to reduce urban-peak motor vehicle
traffic. These strategies include
improvements to alternative modes
(walking, cycling, public transport, car
sharing, etc.), pricing reforms and other
incentives to reduce vehicle travel, and
smart growth land use policies.

13. Prices
 Fuel prices and taxes
 Vehicle taxes and fees
 Road tolls
 Parking fees
 Vehicle insurance
 Transit fares

14. Prices
Vehicle, road, parking, fuel, insurance
and public transport prices tend to affect
travel activity. An increased price for a
particular type of travel tends to reduce
its consumption and sometimes causes
shifts to alternatives.

15. Conclusion
Transport demand is a multi-variable
function. Many factors can affect travel
demands, including demographics,
economics, gasoline prices and service
quality. Gasoline price changes can affect
trip frequency, route, mode, destination,
scheduling, vehicle type, parking location,
type of service selected, and location
decisions. It has a very little effect on the
demand/supply of automobiles.

17. Thank you for your
patience!!!