Wed Oct 5, 1:14 PM ET

A spike in gasoline prices is fueling what could be the biggest year
for U.S. bicycle sales since the Arab oil embargoes more than three
decades ago, a leading bike association said on Wednesday.

"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.

U.S. gasoline prices struck an all-time record above $3 a gallon
after Hurricane Katrina hit the Gulf Coast, shutting several oil
refineries, though prices have eased slightly since then, according
to government surveys.

"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.

"Independent dealers, specialty sporting stores and big-box stores
have told us that since August 1, bicycle sales have jumped
dramatically," he said.

Gasoline prices have been on the rise for months due to high crude
prices and a crunch on global refining capacity, and higher summer
demand along with the recent hurricanes have pushed them to new peaks.

Close to 20 million bicycles are likely to be sold this year,
approaching the record hit after a cut-off of Arab oil triggered
gasoline lines in the United States.

"It should be close to 20 million units. If you look back
historically, the three best years for bike sales were 1972, 1973,
and 1974," Blumenthal said.

Last year's U.S. bicycle sales were just under 19 million.

Travel and motorist group AAA said it has noticed Americans are
looking for ways to cut their fuel consumption by using more fuel-
efficient vehicles, or by using public transportation and bicycles.

"AAA is beginning to think that consumers may finally have tired of
expensive gasoline," said AAA spokesman Geoff Sundstrom.

U.S. fuel demand over the past four weeks has fallen nearly 3 percent
below last year's levels, the U.S. government said on Wednesday.

Demand for gasoline averaged 8.8 million bpd, or 2.6 percent below
last year, while distillate demand averaged 3.9 million bpd, or 3.8
percent below last year, the Energy Information Administration said.