More than Four in 10 Car Owners are Cutting Back Due to High Gas Prices

As the summer driving season kicks off with the Memorial Day weekend exodus, 44 percent of car owners say they have cut back on products or services in order to compensate for the rising costs of gasoline. Not surprisingly, those with lower incomes are more likely than those with higher incomes to say they are cutting back, but even 37 percent of those car owners who earn $75,000 or more say they have cut back on products or spending. Specifically, three in 10 of these car owners say they are dining out less (29%) and reducing their driving (29%) while about one quarter (24%) say they are cutting back on groceries in order to pay for gasoline.

These are some of the results of a Harris Poll of 2,085 U.S. adults ages 18 and older surveyed online by Harris Interactive^® between May 9 and 16, 2006.

American auto companies get some of the blame for people spending more on gas. Three-quarters (74%) of adults say that American car companies are not moving as quickly as they should to build automobiles that consume less gasoline. Only nine percent say the auto companies are moving as quickly as they should. Young adults are more likely thank their older counterparts to have faith in the car companies – 15 percent of Echo Boomers (ages 18 – 29 years) say the companies are moving as quickly as they should as compared to seven percent of Baby Boomers (ages 42 – 60 years).

Two in five (39%) adults think that the profits of the oil and natural gas industry have the greatest influence on rising gas prices. Just over one-quarter (27%) say the greatest influence is from world crude oil prices; smaller numbers say it is due to instability in oil producing areas (7%) and federal and state taxes (6%). Lingering refinery outages from last year’s hurricanes is cited by five percent as the greatest influence on rising prices, while upcoming changes in fuel requirements (2%) and other refining costs (2%) were also cited as having the greatest influence. Regionally, those in the West are more likely to say industry profits are the greatest influence (47%) while those in the South are more likely to be split between profits (35%) and world crude prices (31%).

When asked who can best stop these rising gas prices, one-third (34%) of adults think the oil and gas industry can do so while 29 percent believe the federal government has that ability. One in five (22%) think consumers can best stop rising gas prices while very small numbers say state and local governments (3%) or the automotive industry (3%) can stop the rise of gas prices. Generationally, two in five (40%) Gen Xers (ages 30 – 41 years) think the oil and gas industry can stop the rising prices, followed by 27 percent who think the federal government can do so. Only 16 percent of Gen Xers say consumers have the control. Baby Boomers are more split. About one-third say the federal government (32%) can stop the rise in gasoline prices followed by the oil and gas industry (31%) and consumers (25%).

Looking ahead, three-quarters of adults think that gas prices will be higher on Labor Day than they are today. Almost one-third (31%) say that the prices will be much higher. Few (7%) say prices will be lower on Labor Day, while 17 percent say gas prices will be the same.

A large majority (81%) of adults also think that heating prices this winter will be higher when compared to those costs last winter. Over one-third (35%) say that heating costs will be much higher this winter; only three percent think costs will be lower and 15 percent say heating prices will be the same as last winter.

"Have you cut back on any products or services in order to pay the increased price of gasoline?"

Base: Owns a vehicle

"What products or services have you cut back on?"

Base: Cut back on products or services

Note: Open-ended question, multiple responses allowed.

Note: Responses of 3% or higher shown here.

"Do you think that American automobile companies are moving as quickly as they should to build automobiles that consume less gasoline?"

Base: All adults

Note: Percentages may not add up exactly to 100% due to rounding.

"Which one of the following has had the greatest influence on rising gasoline prices?"

Base: All adults

Note: Percentages may not add up exactly to 100% due to rounding.

"In your opinion, who can best stop rising gasoline prices?"

Base: All adults

Note: Percentages may not add up exactly to 100% due to rounding.

"Thinking ahead to the end of summer, how do you think gas prices on Labor Day in September will compare with gas prices now?"

Base: All adults

Note: Percentages may not add up exactly to 100% due to rounding.

"Thinking ahead to this coming winter, how do you think heating prices will compare to prices last winter?"

Base: All adults

Note: Percentages may not add up exactly to 100% due to rounding.

This Harris Poll was conducted online within the United States between May 9 and 16, 2006 among 2,085 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

All surveys are subject to several sources of error. These include: sampling error (because only a sample of a population is interviewed); measurement error due to question wording and/or question order, deliberately or unintentionally inaccurate responses, nonresponse (including refusals), interviewer effects (when live interviewers are used) and weighting.

With one exception (sampling error) the magnitude of the errors that result cannot be estimated. There is, therefore, no way to calculate a finite "margin of error" for any survey and the use of these words should be avoided.

With pure probability samples, with 100 percent response rates, it is possible to calculate the probability that the sampling error (but not other sources of error) is not greater than some number. With a pure probability sample of 3,979 adults one could say with a 95 percent probability that the overall results have a sampling error of +/- 2 percentage points. However that does not take other sources of error into account. This online survey is not based on a probability sample and therefore no theoretical sampling error can be calculated.

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