High gasoline prices hurting U.S. consumers: poll

By Tom Doggett

WASHINGTON (Reuters) - As gasoline prices roar to successive record highs, more Americans are hurting at the pump, plan to cut back on driving and buy fewer gas-guzzling vehicles, according to a consumer group survey.

U.S. households spent more than $100 billion on gasoline during the first quarter of this year, more than double the $40 billion spent in the same period just six years ago, according to the Consumer Federation of America.

"That's a huge bite out of the household budget," said Mark Cooper, CFA's research director. "People will use less gasoline."

The CFA surveyed 1,004 "representative Americans" during the first week of April.

U.S. average gasoline prices reached a record $3.50 gallon on Monday, according to the travel and auto group AAA, with diesel hitting a peak $4.20 a gallon.

Fuel costs are rising on the back of crude oil which climbed to a record $117.60 a barrel on Monday.

The survey conducted for the CFA found that 60 percent of respondents said rising gasoline prices caused them much or some hardship, with 27 percent reporting much hardship.

As a result, 45 percent of those surveyed said they were driving less compared with a year earlier, while only 10 percent said they were driving more.

Lower-income households earning less than $35,000 cut back on driving even more, 58 percent less than year-ago levels.

The Energy Department is forecasting that summer gasoline demand will fall for the first time since 1991 due to high fuel prices.

Higher gasoline costs will dramatically change the types of vehicles consumers buy in the future, according to the CFA.

Forty-two percent said they intended to purchase vehicles with average fuel economy of more than 30 miles per gallon, compared with the median for current vehicles of 24 mpg.

"(Consumers) are and will be looking for cars that get much better gas mileage than their current vehicle, and than most automakers are supplying," the group said.

Only 5 percent of the vehicle models offered in 2007 attained 35 mpg or more, according to the group's findings.

"Clearly the automaker with the most fuel-efficient vehicles wins," said CFA spokesman Jack Gillis.