June 2008
Gas prices survey shows pain at the pump hurts at home
Consumer Reports finds drivers drastically cutting back, car shoppers focused on fuel economy
American motorists have been feeling pain at the pump, and it is affecting their lifestyles and shaping their car-buying decisions,
according to the latest Auto Pulse survey conducted by Consumer Reports National Research Center. The results show a critical
tipping point has been crossed, and another is just around the corner.
Consumers are cutting back on driving, vacations, and entertainment spending, while also struggling with food and health-care costs. Who's to blame for these tough times? According to the survey, 77 percent point to the federal government for a failure to carry out an effective energy policy, with many also blaming oil companies (75 percent) and foreign oil producers (70 percent).
EFFECTS OF RISING FUEL COSTS
Gas prices have risen sharply this year, climbing from $2.96 per gallon (Feb. 11, 2008) to $4.08 (June 23)—a 38-percent increase, according to data from the Energy Information Administration. That rapid change is raising the price of not just transportation, but also key commodities such as food and heating oil. Combined with a down housing market, recent natural disasters, and a struggling economy, financial pressures on multiple fronts are burdening consumers, with no relief in sight. As a result, 45 percent have been putting less money into savings accounts, about a quarter have cut back on essentials like food or healthcare, and 17 percent have charged more expenses on credit cards—all troubling behavior that portends future home-front challenges.
In the 2007 Auto Pulse survey on gas prices, we found that the tipping point at which motorists said they will drastically reduce driving would be $3.50 a gallon—a figure that seemed somewhat remote at that time. Now that the national gasoline price average has soared past that figure, motorists report making significant changes to their driving and spending habits, with more to come. In this year's survey, the next critical point when drivers would further cut back on driving is a median price of $4.32 per gallon—just 24 cents away from the current national average. But already, many less-affluent drivers have reached their tipping point. As a result, we have found many motorists making tough financial sacrifices, with more to come should prices continue to increase.
SURVEY HIGHLIGHTS
To learn how fuel prices are affecting American motorists, the Consumer Reports National Research Center conducted a random,
nationwide telephone survey from June 5-8, 2008. Interviews were conducted with 884 adults 18 years old or older, who drive
a vehicle and whose household owns at least one vehicle. When the survey was conducted, respondents had paid a median $3.94
for their last fill-up.
Learn how to save at the pump by visiting Consumer Reports' guide to driving green. Check the latest national average gasoline prices.
For more information on our gas survey, see our blogs:
Americans feel the impact of gas prices
Who is to blame for gas prices?
Downsizing to two wheels
Join the discussion in the Cars forums to share how gas prices have affected your lifestyle and what adjustments you are making to compensate.
Continue reading for our survey analysis on the following pages.
Consumers are cutting back on driving, vacations, and entertainment spending, while also struggling with food and health-care costs. Who's to blame for these tough times? According to the survey, 77 percent point to the federal government for a failure to carry out an effective energy policy, with many also blaming oil companies (75 percent) and foreign oil producers (70 percent).
EFFECTS OF RISING FUEL COSTS
Gas prices have risen sharply this year, climbing from $2.96 per gallon (Feb. 11, 2008) to $4.08 (June 23)—a 38-percent increase, according to data from the Energy Information Administration. That rapid change is raising the price of not just transportation, but also key commodities such as food and heating oil. Combined with a down housing market, recent natural disasters, and a struggling economy, financial pressures on multiple fronts are burdening consumers, with no relief in sight. As a result, 45 percent have been putting less money into savings accounts, about a quarter have cut back on essentials like food or healthcare, and 17 percent have charged more expenses on credit cards—all troubling behavior that portends future home-front challenges.
In the 2007 Auto Pulse survey on gas prices, we found that the tipping point at which motorists said they will drastically reduce driving would be $3.50 a gallon—a figure that seemed somewhat remote at that time. Now that the national gasoline price average has soared past that figure, motorists report making significant changes to their driving and spending habits, with more to come. In this year's survey, the next critical point when drivers would further cut back on driving is a median price of $4.32 per gallon—just 24 cents away from the current national average. But already, many less-affluent drivers have reached their tipping point. As a result, we have found many motorists making tough financial sacrifices, with more to come should prices continue to increase.
SURVEY HIGHLIGHTS
- 79 percent of car shoppers intend to buy a vehicle with better fuel economy.
- 80 percent of car shoppers are considering a diesel, flex-fuel, or hybrid vehicle.
- 54 percent would pay more for a more fuel-efficient vehicle.
- 74 percent are driving less due to fuel costs.
- $4.32 is the median tipping point when drivers will further drastically curtail driving.
- 26 percent have considered two-wheel transportation, such as a motorcycle or motor scooter.
- 0 percent are looking for a model that is much larger.
Learn how to save at the pump by visiting Consumer Reports' guide to driving green. Check the latest national average gasoline prices.
For more information on our gas survey, see our blogs:
Americans feel the impact of gas prices
Who is to blame for gas prices?
Downsizing to two wheels
Join the discussion in the Cars forums to share how gas prices have affected your lifestyle and what adjustments you are making to compensate.
Continue reading for our survey analysis on the following pages.
