Friday, April 22, 2005

High gas prices force changes in Americans' lives, poll finds

By Will Lester / Associated Press

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WASHINGTON - Americans feeling the impact of high gasoline prices are driving less, rearranging vacations and cutting other expenses to balance the budget.

An Associated Press-AOL poll found that 51 percent of those surveyed say that if fuel prices remain high for the next six months it will cause a financial hardship for them.

Thirty percent of those polled classified the hit as "serious," according to the survey by Ipsos-Public Affairs for the AP and AOL News.

"You have to decide _ gas, groceries, medicine," said Marcia Cain of Indianapolis, who is semiretired. "I'm on limited income. I don't go out as much _ eating out, going to listen to jazz. It uses gas you don't want to use."

Cain paid $2.15 per gallon this week after paying $2.35 per gallon the week before. "It aggravates me, but there's not much I can do about it," she said.

The survey found that 58 percent of respondents have reduced their driving, 57 percent have cut back on other expenses and 41 percent have changed vacation plans to stay closer to home.

High global oil prices have pushed the cost of regular gasoline for U.S. motorists to around $2.21 per gallon, with prices ranging from an average of $2.64 in California to about $2 in Oklahoma, according to the auto group AAA. Prices are expected to remain above $2 nationally through the summer.

Americans spread the blame around, with 29 percent pointing to the oil companies, 24 percent citing foreign governments that dominate oil reserves and 23 percent saying it's the fault of politicians. Eight percent blame the high prices on "environmentalists who want to limit oil exploration," while 6 percent blame "people who drive gas-guzzling vehicles."

"I blame the oil companies," said Tom Brewer, a father of three from Cable, Ohio. "They are the ones that are fluctuating the prices up and down."

"The last time I was at the gas pump, it was $1.96 and then it was $2.25 right after I finished," Brewer said. "The next poor guy had to pay 29 cents higher."

Anxiety about gasoline prices comes as President Bush is pressing Congress to approve energy legislation that includes $8.1 billion in tax breaks, mostly for energy companies, and would open an Alaskan wildlife refuge to oil development. The House passed its version of the bill Thursday.

The president gets low marks from the public for his handling of energy problems, with 62 percent saying they disapprove. When he first took office, people were more inclined to say he would handle energy problems effectively.

Many people, 41 percent, say gas prices are making them seriously consider purchasing a more fuel-efficient vehicle.

Sales of big trucks and sport utility vehicles are off at General Motors. And purchases of Ford's largest SUVs _ the Excursion, Expedition and Explorer _ all fell by more than 24 percent in the first three months of the year.

Automakers that produce hybrid cars that run on a combination of electricity and gas are reporting strong interest from consumers.

Seth Miller, who lives in Sumter, S.C., and serves in the Air Force, spent almost $80 at $2.10 a gallon the last time he filled up his Chevy Silverado truck. He has considered getting something that would be less of a gas guzzler.

"If it were feasible for me to buy another (more fuel-efficient) vehicle and keep my truck, I would," Miller said.

Dermot Gately, a New York University economics professor, said it takes time for consumers to feel the full impact of gas prices.

"The next time they buy a vehicle _ in two or three years _ they may be more careful to get a more fuel efficient one," he said. "It's a relatively slow adjustment."

The poll of 1,000 adults was taken April 18-20 and has a margin of sampling error of plus or minus 3 percentage points.

On the Net: Ipsos-Public Affairs: http://www.ap-ipsosresults.com