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Gas Prices Force Consumers To Cut Other Spending

Consumers Fear $5 Gas Is Not Far Off

By Joe Benton
ConsumerAffairs.com

April 8, 2005

• Gas Prices Fall Below $2 a Gallon • Oil and Gas Supplies Rise • Gas Prices Accelerate Their Decline • Gasoline Prices Down 19 Cents in a Week • Charlotte Gas Stations Make Refunds to Consumers • Oil Snaps Back As Markets Sense Post-Election Bounce • Gas Prices Settle Still Lower for Weekend • Gasoline Prices Keep Falling • Gas Below $3 Nationwide • Average Gas Price Down to Nearly $3 a Gallon • Gas Prices Drop, Along With Oil • Gas Prices Head Lower as Economy Slows • Gas Price Declines for 9 Days • Gas Prices Continue Downward Trend • Oil Prices Surge By Record $25 a Barrel • Gas Prices Drop for 5 Days • Price-Gouging Probes Spread to 6 States • Investigations of $5 Gas in North Carolina, Florida, and Virginia • Shortages, Price Hikes Follow Ike in Southeast • States Investigate Gasoline Price Gouging Claims • Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says • Oil Prices Fall, Gas Prices Surge • Gas Prices Slide 8 Percent from Record --- • More ...

A large majority of American consumers, 76 percent, fear gasoline prices will continue up and half of the country believes the cost of a gallon of gasoline could eventually exceed $5.

According to a survey conducted by Boston Consulting Group, soaring gasoline prices have prompted 77 percent of Americans to change their spending habits.

The national price for regular unleaded gasoline remains above $3 with a gallon selling for $3.01.

Midgrade gasoline is down a penny and at $3.19 a gallon and the price of premium gasoline is unchanged at $3.31 nationwide.

Diesel fuel prices are up a penny with diesel selling for an average of $3.04 a gallon.

Regular gasoline is up 71 cents from a year ago and closing in on the record $3.05 set last September following Hurricane Katrina.

According to the BCG survey, 50 percent of Americans have cut spending, while 59 percent have delayed a purchase of an item they consider not absolutely necessary because of the price of gasoline.

Half of the people polled said they try to avoid impulse purchases, while 46 percent said they seek recommendations from family and friends on good deals.

Consumer spending declined in the second quarter of the year and that is bad news for the U.S. economy. Consumer spending fuels about two-thirds of U.S. economic activity. Consumers have cut back on big-ticket items and costly items like cars.

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