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71 Percent Expect $4 Gas This Summer, Bigger Fear For Public Than Recession, Mortgage Meltdown and Joblessness
added: 2008-02-02

Gas prices this summer reaching $4 a gallon are expected by 71 percent of Americans, of whom more than half (51 percent) cite fuel prices as their #1 economic worry for 2008, ahead of fears of recession, the mortgage foreclosure meltdown and the prospect of more joblessness.

Nearly nine out of 10 Americans (89 percent) - including 95 percent of Democrats and 84 percent of both Republicans and Independents - say that "the views of candidates on energy-related issues - such as gasoline prices, home heating oil prices, global warming and energy independence" will be an important factor in how they vote.

Other key findings of the new CSI/40MPG.org survey include: Over four out of five Americans (84 percent) - including 91 percent of Democrats, 80 percent of Independents and 76 percent of Republicans - do not "think the federal government is doing enough about high energy prices and the U.S. dependence on Middle Eastern energy sources"; nearly half of Americans (49 percent) are "not satisfied" that "Congress did everything it could to improve fuel-efficiency rules for U.S. automakers" in recently increasing federal mile-per-gallon standards; over four out of five Americans (84 percent) think "big oil companies are currently gouging consumers at the gas pump"; and about four out of five Americans (79 percent) would support "a tax on the windfall profits of oil companies if the resulting revenues were spent" for "research on alternative energy."

Civil Society Institute President and Founder Pam Solo: "Americans are clearly expecting more bad news in terms of energy prices and they are not satisfied that elected official have done everything they can to deal with the intertwined issues of U.S. energy security and addressing global warming. Americans are looking for leadership on energy and climate issues, they understand the complex problems ahead and they want their leaders to lead and produce tangible results and they seem ready to deliver that message in the fall."

40MPG.org spokesperson Ailis Aaron Wolf said: "These survey findings suggest that $4-a-gallon gasoline could be a real tipping point for the public in terms of an even bigger rush for hybrids, clean diesels and other highly fuel-efficient vehicles. It is interesting to note in particular that young people who have been raised in a 'high-cost fuel environment' over the last decade are overwhelmingly inclined to abandon gas guzzlers in favorite of gas-sipping, climate-friendly vehicles."

Opinion Research Corporation Senior Researcher Graham Hueber said: "Gas prices rising to $4 or higher will further tighten the wobbly U.S. Economy. Over half of Americans (52 percent) said that gas prices at $4 would cause them to 'cut back on ... summer or end-of-year holiday travel' and nearly three out of five (58 percent) say they would 'cut back on your personal spending to help pay for higher gasoline prices.' Interestingly, Republicans (63 percent) were the most likely to cut back on personal spending at the $4-a-gallon gasoline level, compared to 57 percent of Democrats and 49 percent of Independents. If gasoline rises over $4 a gallon, nearly three out of five Americans (58 percent) will cut back on travel plans, while 63 percent will pull back on their personal spending."

SURVEY FINDINGS

- In addition to 71 percent of Americans expecting gasoline prices to reach $4 a gallon this summer, nearly half (48 percent) expect gas prices to exceed $4 a gallon by mid-year.

- High energy prices top recession fears and the mortgage foreclosure crisis as American's most often-cited economic problem in 2008. More than half of Americans cited "rising gasoline and home heating oil prices" (51 percent), followed by the recession/economic slowdown (47 percent), the mortgage crisis/falling home prices (31 percent), higher inflation (21 percent), and an increase in joblessness (18 percent). Concern about high gasoline and other fuel prices is bipartisan, but sharply divided on income lines, cited by 70 percent of households earning less than $25,000 per year, compared to 37 percent of households earning $75,000 or more per year.

- Over half of Americans (52 percent) said that gas prices at $4 would cause them to "cut back on ...summer or end-of-year holiday travel" and nearly three out of five (58 percent) say they would "cut back on their personal spending to help pay for higher gasoline prices." If gasoline rises over $4 a gallon, nearly three out of five Americans (58 percent) will cut back on travel plans, while 63 percent will pull back on their personal spending.

- More than a third (37 percent) of Americans say they would be more likely to buy a hybrid, clean diesel or other highly fuel-efficient vehicle if the price of gasoline goes to $4. This percentage increases to 44 percent if the price of gas exceeds $4 a gallon.

- Rising fuel prices already have caused 34 percent of Americans who drive to or at work to cut back on their driving. Even though 65 percent are driving the same amount as before, the reason is that they have no choice but to do so. Only 12 percent of those in this group who have not cut back on their driving in the face of higher gasoline prices are doing so because they are insensitive to the prices. By contrast, over half of Americans (52 percent) who have not cut back on driving say they "have to (keep driving) in order to keep earning a living." Half of those making $25,000 a year or less have cut back on their driving, compared to just 23 percent of those in households earning $75,000 or more. Democrats (39 percent) and Independents (40 percent) are more likely than Republicans (24 percent) to be driving less.

- About four out of five Americans (79 percent) would support "a tax on the windfall profits of oil companies if the resulting revenues were spent" for "research on alternative energy." Over half of Americans (52 percent) say they would support this approach "a great deal." The strong bipartisan support for this approach includes 72 percent of Republicans, 79 percent of Independents and 84 percent of Democrats. If the funds were used for the "creation of a federal emergency fund to offset the harm of future climate change-related disasters, such as hurricanes, droughts and wildfires," support for a windfall profits tax comes in at 64 percent support - including 48 percent of Republicans, 55 percent of Independents and 77 percent of Democrats.


Source: PR Newswire

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