Pump-price shock with a difference

Increasing pressure: Cars refuel at a Costco gas station in Washington. Raw material costs are about 10.5% of the average price paid for new vehicles today, up from 5.9% in April 2020. — Bloomberg

DETROIT: Gasoline soaring above US$4 (RM16.78) a gallon this month has inspired comparisons to 2008, when pump prices sapped demand for fuel-guzzling sport utility vehicles (SUVs) and helped push Detroit’s automotive behemoths into bankruptcy.

While Americans still love their spacious SUVs, and pump prices are only moderately higher than their peek in 2008, the similarities mostly end there.