YES! Wonderful news from Reuters on Yahoo!. Small is definitely the new big! I really hope that we have finally reached the tipping point.

Do I hear $5.00/gallon? End of the obesity epidemic? Clearer skies? Less asthma and respiratory disease? Funding for improved public transit, bullet trains, bike paths, walkable car-free downtowns? An end to the runaway suburban sprawl that is eating up open space and farmland at an alarming rate?

High gasoline prices eroding demand
Wed Oct 5, 7:31 PM ET

Soaring gasoline prices in the United States are beginning to erode demand for the fuel, cooling the American love affair with gas-guzzlers and pushing travelers toward public transportation and even bicycles.

"Consumers are searching for ways to cut their fuel consumption," said Geoff Sundstrom, spokesman for motorist group AAA. "They are seeking to drive fewer miles and look for other means of getting around."

U.S. fuel demand has fallen nearly 3 percent below last year's levels due to soaring gasoline prices, which struck a record above $3 a gallon at the pumps after Hurricane Katrina hit the Gulf Coast, shutting several oil refineries.

Total oil products demand over the past four weeks averaged 19.9 million barrels per day, or 2.9 percent less than the same period last year, according to a weekly report from the Energy Information Administration, the statistical arm of the Department of Energy.

Demand for gasoline in particular averaged 8.8 million bpd, or 2.6 percent below last year, the report showed.

"There are two factors," said Doug MacIntyre, an EIA analyst. "The higher prices are most certainly having some impact. And the second factor is logistic and distribution problems, getting the product to where it can be used."

MacIntyre said refinery outages in the wakes of hurricanes Katrina and Rita have resulted in some regional supply problems, and that the EIA had heard recent reports of gas stations running short of fuel.

"There will be some supply issues in the Midwest and East Coast until the refineries can come back up and raise supply," MacIntyre said.

SMALLER CARS, BICYCLES

The declines in fuel demand are playing out in the auto industry, with Americans backing away from "big metal" and toward smaller cars, public transport, and bicycles.

SUV and truck sales for big U.S. automakers Ford (NYSE:F - news) and GM (NYSE:GM - news) slumped around 30 percent in September on the back of high gasoline prices while Japanese carmakers posted big gains in the U.S. market with their smaller vehicles.

Meanwhile, the American Public Transit Association has reported sharp increases in ridership on trains, buses and subway systems in recent months.

"With gas prices now at record levels, more people across the country are turning to public transportation," APTA President William W. Millar said in a release last week.

The higher prices are also fueling what could be the biggest year for U.S. bicycle sales since the Arab oil embargo more than three decades ago.

"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.

"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.

Blumenthal said close to 20 million bicycles may be sold this year, up from just under 19 million last year, and approaching the record set in the early 1970s.