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Oil Company Greed Seen as Major Reason for High Gas Prices

Oil Company Greed Seen as Major Reason for High Gas Prices

Majority of Americans expect $4 gas prices this summer

GALLUP NEWS SERVICE

PRINCETON, NJ -- The latest Gallup panel survey finds the public bracing for continued rising gas prices this summer. A majority of poll respondents expect gas prices to reach the $4 per gallon level in their local area this summer, though only a small minority expects it to reach the $5 mark. Roughly two in three Americans say they have already been affected financially in some meaningful way by the high gas prices. The public most often mentions oil company greed as the reason for the high gas prices, though it also mentions other more practical reasons such as problems with refineries.

In the May 21-24, 2007, survey, 58% of Americans predict that gas prices will reach $4 per gallon in their local area this summer. However, only 8% believe gas prices will reach $5 per gallon, and just 1% of the public believes prices will go as high as $6 per gallon.

Those living in the Midwest and West are much more likely than those in the East and South to say gas prices will reach the $4 per gallon level. There is little meaningful variation by region in predictions that gas prices will reach the $5 and $6 levels.

A majority of respondents report being affected financially in some meaningful way by the higher gas prices -- 18% say it has created a financial hardship for them, while an additional 49% say it has caused them to adjust their usual spending and saving habits in significant ways. Only one in three Americans say the change in gas prices has not had much impact on their financial situation.

As one might expect, Americans living in lower-income households (annual income of less than $35,000) are feeling the greatest pinch. Thirty-two percent of those living in lower-income households say the high gas prices have caused hardship for them, while an additional 42% say it has forced them to change their usual spending and saving habits. Among middle-income families (those with annual household incomes between $35,000 and $75,000), 16% are experiencing hardship and 57% are having to adjust their spending and saving. Only 9% of those in upper-income households (incomes of $75,000 and higher) say gas prices are causing them hardship, but 45% of this group say they have had to make financial adjustments.

The poll also asked Americans for their views about why gas prices are so high. The most common single reason, mentioned by one in three respondents, is that oil companies are greedy and are gouging consumers. Nearly as many respondents offer practical explanations including problems with refineries (16%), increased demand (10%), more driving during the summer months (3%), and oil shortages (3%). Thirteen percent blame high gas prices on problems in the Middle East, including the Iraq War. The government also receives its share of blame; 9% say government involvement has led to the high gas prices, while 5% cite a lack of government regulation of oil companies.

From what you have heard or read, why do you think the price of gasoline is so high right now? [OPEN-ENDED]

2007 May 21-24

%

Oil/gas companies getting greedy and gouging the public

34

Problems with refineries/need maintenance/not enough capacity

16

Due to the crisis in the Middle East/war

13

Increased supply and demand/Americans are not conserving

10

Politics/government involvement

9

No regulations/oil/gas companies can get away with it

5

Changes in seasons/holidays/vacation/driving increase

3

Shortage of oil

3

Too much dependency on foreign oil

3

Crude oil prices

3

Future market adjustments

1

Taxes being applied

1

 

Other

3

No reason in particular

1

No opinion

8

Percentages add to more than 100% due to multiple responses.

Republicans (35%) are just as likely as Democrats (33%) and independents (33%) to mention the oil company greed as the reason why gas prices are so high. Republicans are slightly more likely than Democrats to cite refinery issues, while Democrats are slightly more likely to mention instability in the Middle East.

Survey Methods

Results for this panel study are based on telephone interviews with 1,007 national adults, aged 18 older, conducted May 21-24, 2007. Respondents were drawn from Gallup's household panel, which was originally recruited through random selection methods. The final sample is weighted so it is representative of U.S. adults nationwide. For results based on the total sample of national adults, one can say with 95% confidence that the maximum margin of sampling error is ±4 percentage points.

10. Which of the following best describes how gas prices have affected you personally -- [ROTATED: gas prices have created a hardship for you and your family, gas prices have caused you to adjust your usual spending and saving habits in significant ways, but have not caused a hardship, or gas prices haven't had much impact on your financial situation]?



Created a hardship


Adjusted usual spending/ savings habits

Haven't had much impact on financial situation



No
opinion

2007 May 21-24

18%

49

33

*

11. From what you have heard or read, why do you think the price of gasoline is so high right now? [OPEN-ENDED]

           

2007 May 21-24

%

Oil/gas companies getting greedy and gouging the public

34

Problems with refineries/needing maintenance/not enough capacity

16

Due to the crisis in the Middle East/war

13

Increased supply and demand/Americans are not conserving

10

Politics/government involvement

9

No regulations/oil/gas companies can get away with it

5

Changes in seasons/holidays/vacation/driving increase

3

Shortage of oil

3

Too much dependency on foreign oil

3

Crude oil prices

3

Future market adjustments

1

Taxes being applied

1

 

Other

3

No reason in particular

1

No opinion

8

Percentages add to more than 100% due to multiple responses

12. Do you think the price of gasoline in your local area will or will not reach -- [ITEMS READ IN ORDER] -- this summer?

A. Four dollars per gallon

Yes, will

No, will not

No opinion

2007 May 21-24

58%

41

1

B. Five dollars per gallon

Yes, will

No, will not

No opinion

2007 May 21-24

8%

92

1

C. Six dollars per gallon

Yes, will

No, will not

No opinion

2007 May 21-24

1%

99

1


Gallup https://news.gallup.com/poll/27709/oil-company-greed-seen-major-reason-high-gas-prices.aspx
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