Americans are expecting
higher gas prices for the rest of the year. In fact, 78% fully expect to see $5 a gallon gas by year's end.
A CNN/Opinion Research Corp. poll found that 94% of respondents expect they will have to pay $4 a gallon sometime this year - and 78% said they figure it will hit $5.
The national average for gasoline was $3.61 on Monday, according to motorist group AAA.
Consumers' fears that they will have to pay more have intensified. A year ago, 79% thought gas would cost $4 by the end of 2007 and only 28% feared $5 gas.
At the same time, high prices seem to be easier to swallow now than it has been for most consumers in the past. Of the more than 1,000 American adults surveyed in the poll, conducted April 28-30, 60% said high fuel prices have caused hardship for them or their household. That's down from 72% in March and 66% during the same time last year.
But if Americans feel better able to absorb the rising price of gas, it might be because they are driving less. In fact, demand for gas is far below the average for this time of year.
"It takes a big jump in prices to alter commuters' behavior, but it appears we have now approached that level," said Stephen Schork, editor of energy industry newsletter The Schork Report.
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In addition to cutting back on driving, consumers are also buying more fuel-efficient vehicles. U.S. automakers reported a continued drop in SUV and truck sales in April, but smaller cars and hybrid vehicles have increased dramatically. Sales of Toyota's hybrid Prius rose 67% in April.
Toyota is destroying its competition in America. And with gas prices continuing to rise, more people will be ditching their SUVs and switching to more fuel-efficient cars. Automakers who have pushed fuel economy in their new car lines are doing well. The others, not so much.
