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UPDATE 1-California gasoline demand falls in Q1 '09 -state

HOUSTON, June 30 | Tue Jun 30, 2009 11:56pm IST

HOUSTON, June 30 (Reuters) - California gasoline demand fell 5.6 percent in the first quarter of 2009 from the same period a year earlier, the California State Board of Equalization said on Tuesday.

Diesel consumption was down 11.6 percent in the first quarter, the Board of Equalization said.

"For three full years now consumers have cut down on the amount of fuel they use," said board Chairwoman Betty Yee. "High gasoline prices, use of more efficient vehicles and the downturn in the economy are all likely contributors to this trend."

The 2009 first quarter was the 12th consecutive quarter that gasoline demand fell in California, the largest motor fuel market in the United States.

California drivers purchased 3.6 billion gallons of gasoline between January and March 2009, based on sales tax receipts from retailers, the board said. The state's drivers bought 3.8 billion gallons in same period of 2008.

Diesel demand fell to 619 million gallons in the first quarter from 700 million gallons in the same period of 2008.

March 2009 gasoline demand fell 2.3 percent from March 2008 while diesel demand slid 0.5 percent in March from a year earlier. (Reporting by Erwin Seba; Editing by David Gregorio)

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