Isra-Mart srl:Rising gas prices could choke US public transit, warns industry body

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Isra-Mart srl news:

The American Public Transportation Association (ATPA) has warned Congress there could be severe constraints on public transit if petrol prices continue to rise.

In a report issued this week, ATPA said that rising gasoline prices were already causing spikes in demand for public transportation in some areas of the US.

The report predicts that if the price of oil rises above $4 per gallon, the US can expect 670m more passenger trips, resulting in more than 10.8bn trips per year. If prices were to hit $6 per gallon, there could be as many as 12.9 billion trips per year.

"With most states, municipalities and transit systems short of funds due to the recent economic recession, the Congress must act to fund public transportation investment needs," said the APTA report. "First in the FY 2011 final appropriations bills and second by enacting a well-funded, six-year, multimodal surface transportation law such as has been proposed by president Obama in his FY 2012 budget."

Obama has also called for a high-speed rail system, operating at local, regional and inter-state levels.

According to the report, average gas prices stood at $3.520 on March 7, adding that it was the highest recorded price since the 2007-8 spike. Moreover, last night's UN decision to impose a no fly zone over Libya could lead to further unrest in the Middle East that is unlikely to soothe market inflation in the short term.

The Association said that 85 per cent of transit agencies reported capacity constraints during the high oil prices of 2007-8.