Who is to blame for high gas prices? Motorists know.

Motorists have been feeling the pain at the pump, and it is impacting their lifestyles and shaping future car buying habits, according to the latest Auto Pulse survey conducted by the Consumer Reports National Research Center. And 99 percent have strong feelings about who is to blame. Respondents mostly pointed fingers at the federal government.

With fuel prices and the upcoming presidential election dominating headlines, we thought it would be interesting to see how these issues intersect. To check America’s pulse, we conducted a random, nationwide telephone survey from June 5-8, 2008 of adults aged 18 years or older who drive and whose household owns at least one vehicle. For the full story, read "Gas prices survey shows pain at the pump hurts at home." Here, we will focus on who motorists blame for the elevated gas prices and what recommendations they have for turning around this trend.

Blame game
During a period of record profits for many oil companies, it is no surprise these industrial giants were one of the leading targets, blamed by three-quarters (75 percent) of consumers. But more pointed a finger at lawmakers in Washington, singling out the failure of government to implement an effective national energy policy.

Who do you blame for higher gas prices?

77% Government’s failure to implement an effective energy policy

75 Oil companies

70 Foreign-oil producers

68 Congress

68 Middle East conflict

64 Bush administration

64 Rising demand from developing nations

62 Restrictions on increasing refinery capacity

61 Restrictions on domestic oil exploration

Notably, natural disasters (26 percent) and gas stations (21 percent) ranked much lower.

How to fix it
While survey respondents were quick to assign blame, they were equally responsive in providing solutions. In fact, there was strong consensus on many possible actions that could be taken by the federal government to reduce fuel costs.

Motorists agreed that the government should:

90% Increase support for alternative energy development

84 Negotiate lower prices with oil-exporting nations

83 Encourage conservation through tax incentives, alternative transportation

81 Allow more drilling in the U.S. and offshore

79 Encourage the construction of more refineries

69 Impose price controls on gasoline

Where do you stand on both blame and possible solutions? Post your comments below.

—Jeff Bartlett

Join the discussion in the Cars forums to share how gas prices have impacted your lifestyle and what adjustments you are making to compensate.

Learn how to save at the pump by visiting Consumer Reports’ guide to driving green. Check the latest national average gasoline prices.

Comments

[Nate]

One thing that you forgot to mention is INFLATION. What causes inflation? Talk to anyone not in this country who has a stable currency and they will tell you that the price of their gas is not increasing as much as it is in the US because THE VALUE OF OUR DOLLAR ON THE WORLD MARKET IS FALLING!!! This survey just goes to show that Americans no nothing about economics.

[Mike Canada]

Once there is a new president, fuel prices will drop. that you can take to the bank! in much the same way president bush is banking the profits from the oil companies he and dick cheney have stock in!

[stu]

The US is the largest consumer of oil. We need to greatly reduce this. When you want to decrease demand for a product you tax it.
PROPOSAL:1/ Increase the tax on gas by 10 cents/gal. every 6 mos. for the next 10 years, $2/gal. total. This would still be less than 1/2 the tax many europeans pay.
2/ Reduce payroll and/or income tax by the same amount,focus on low/middle incomes,i.e. the overall tax would be unchanged.

[GV Giant]

John Anderson said: "(The American people) are the ones who were suckered into buying the Excursions, the Sequoias, the Hummers, the Denalis. And worst of all- Consumer Reports has been giving a "pass" to these energy-hogs for several years now. There was a time in the not-so-distant past where CU advocated restraint, practicality, and being conscious of consumption."

You make a good point here. And I cannot help but think that the attitude of CU towards these vehicles comes very close to the time when companies like Toyota (which until very recently had been CU's blind-spot, or shall I say 'darling') joined this market with vehicles like the Sequoia and the huge Lexus.

I will give CU credit in at least trying to tell people of the value of minivans over large SUV's. Sadly, from what I hear, the minivan may die before the large SUV does. And that is sad because many people will be very unhappy with the cramped spaces inside of sedans and small SUV's. Especially with Honda having re-designed the Odyssey with improved fuel mileage, and the others lining up behind Honda, there has never been a better time to take a long look at these comfortable, versatile, lately agile, and comparatively fuel efficient vehicles that are the safest vehicles on our roads today.

[Rich Neve]

Seems to me that the biggest problem is the unregulated speculation of oil on the commodities market. $140 a barrel results in high pump prices. Data shows demand for gas is falling as prices climb, however, as we know supply and demand only works in favour of the corporation and prices are not falling- propped up by speculation, perhaps?

[KT]

I am amazed to read some of the comments on gas prices. Apparently, most of the people writing those comments spend too much time watching ABC, NBC, CBS, and CNN!, and not enough time watching C-SPAN. The plans for the future are far worse if the Dem's retain control of the Congress. They plan to transfer $6.7 trillion dollars from your pocket to those the government thinks deserves it. They call it "cap and trade", with 400 pages of new regulations. I call it the biggest transfer of wealth in the history of the world. Higher gas prices are a drop in the bucket compared to what they have planned. 100+ % increase in utility bills, heating oil, electricity, natural gas, not to mention, gasoline. Higher food prices, and a dramatically higher cost of living. What is the outcome? For those who believe in the bogus, human caused, global warming scam, it MIGHT lower the temperature 1/10th of 1 degree, according to the Government Accountability Office. Let's see, $7 trillion to MAYBE lower the earth's temperature 1/10th of a degree. Sounds like the Social Securtiy Scam, now $9 trillion in debt, and climbing everyday. And the Medicare, Medicaid Scam on the verge of going bankrupt, with the government unable to pay doctor's a fair price, so those of us on insurance get to pay the cost, in addition to the medicare tax. Every panel I have watched on C-SPAN agrees, we need new energy resources along with more domestic production. Oil well drillers, interviewed by a Fox Business Channel reporter, say they could bring some wells on line in 18 months. There is now a 2 year backlog for windmills the power companies are being required to put in and solar panel prices are at an all time high. Higher demand is driving the costs up, not down. If you think it is bad now, hold on to your hat!

[Ken, New Hartford, NY]

Have your cake and eat it too. Low taxes big benefits. Gas guzzling SUV and cheap gas. Americans are like a bunch of spoiled rotten children whose mommy and daddy never say no. Now they're all crying their little eye's out becuase they can't afford their dredit card lifestyles anymore. Hopfully uncle Ming and Uncle Achmed will finally get us to wake up before it's too late.

[Dr. Bob Davis]

Consumer Reports poll on who is to blame for high gasoline prices might be useful to some for the relief of their frustation over the ever-increasing cost of fuel at the pump, but it serves no useful purpose. Blame, while somewhat cathartic, cannot be a substitute for solutions which in this situation probably are not easy, quick, or very pallitable in the short run. Basic economics teaches us that the price of any commodity will fall if there is an increase in supply or a reduction in demand or some combination of both. The United States represents only 4% of the world's population,but consumes approximately 25% of the world's energy needs. Despite this fact being constant for many years , Americans up until recently had some of the cheapest(and still does) gas prices of the industrialized nations. Other nations such as China and India are developing a growing middle class, who like us, want a taste of the good life which is tantamount to a lifestyle requiring more energy consumption and hence the increase demand for oil. Demand for oil over the world is rising and thus a factor in the increase in price of a petroleum . The fall of the dollar against the Euro and other curriencies is also a contributing factor to the increase in price and all you have to do is travel to Europe to know this is true. Increased drilling whether offshore or anywhere in the USA will help, but without the increase in refining capacity increased production will not slake the thirst of our need for gasoline. As more of us turn to hybrids and possibly hydrogen or fuel cell cars, the demand for petroleum will begin to decline and have a reducing effect on price. Oil companies certainly have an incentive to get all the oil they can when the return is over $140 a barrel which will also increase supply. While I am no fan of Big Oil, their profit margins hover around 7% which is in the middle of the road of most companies. When the supply side of the equation is increased and the demand side is reduced through conservation and alternative-fuel cars and other modes of transportation, we will see a drop in prices and less volatility in price swings that exist now.

[Bill]

Come on folks, let's get real. While demand has certainly increased it can not account for the increases in price in such a short period of time. The price of oil has been artificially inflated by the fears and greed of those that invest in oil futures. How else do you explain how an attack on a tanker in the vicinity of the Mid-East causes the price of a barrel of oil to go up by $3.00. As for what other countries have done, let's not try to compare apples to oranges. What works in Europe or elsewhere won't necessarily work in the U.S. Some countries tax the heck out of their gas, others subsidize the price. No matter what we do, increasing supply won't fix things in the near future and neither will alternative sources of energy. Any solution will just take too long. In the case of oil, basic supply and demand is broken.

[Jeff Schroeffel]

I blame government policies and environmental lawsuits and regulation.

[Amy Liebau]

Please don't blame SUVs and 2 car families. With 3 children in car seats, I require a larger vehicle. I wanted a more fuel efficient vehicle, but that wasn't an option in the American made market at the time. Also, since the school district has closed many neighborhood schools, walking to school is not an option. Yes, there are buses (many more than 2 years ago); however, preschoolers do not have that option. Also, parents who like to volunteer at school can not take the school bus and the city does not have a mass transit system. Also, if you only have one vehicle, than when the 2nd driver needs it, she must first drive the other to work at 6am with 3 tired, cranky kids and also pick him up 5pm in the middle of rush hour. Basically making an extra round trip, instead of just going where they need to go. I try to walk or ride my bike, but most stores are now closing that were within the distances I can go with 3 children in tow. I'm doing my part by planning ahead to try and get all my errands done in one circuit when I do need to drive.

I blame the government. Yes, it takes time to make changes. So, why haven't they started making changes instead of just talking about how long it takes?

[Brian Hicks]

Taxes on gasoline and diesel should be removed. Also, remember the EPA is to blame for the soaring diesel prices because of the increased cost to produce the new ultra-low sulfer diesel.

[John Stokes]

Why is it that basic economics seem to not apply to oil? You cannot conserve your way out of this predicament. We need to drill, build new refineries, and develop new technologies and conserve. The United States is the only country that seems to not want to tap its huge domestic supply. This seems insane and self destructive!

PS - People need to understand that oil companies DO NOT set oil prices. Speculators do

[Bob Eckerfield]

No one seems to consider the cost of domestic oil. When Chevron, Exxon, Conoco, etc, produce oil in the US, that oil does not cost $140/bbl, it costs maybe $20 or so per bbl. But, when that oil is refined and sent to the gas stations, it demands the same price as oil that the Faudis sold for $140/bbl. Strange, huh? This is just plain old price gouging.

[Alan Nardi]

The lions share of the blame has to go to our dysfunctional government. If and when we become a democracy, i.e. a government of the people, by the people, for the people, instead of a quasi democracy,i.e. a government of the people, by special interests, for special interests, we can begin to focus on solving problems of the country and it's citizens, instead of the power struggle we have been in for the past 200 plus years.
OPEC isn't about to look a gift horse in the mouth either. By keeping the supply of oil close to the demand, commodity buyers perceive shortages on the horizon and drive up prices. That fattens the wallets of OPEC, the oil companies, and the buyers who are fortunate enough to buy and sell at the right time.
Blame. There's plenty to go around. From our government to OPEC to Big Oil to speculators to consumers who lack the discipline to conserve resources.
Solution. At the present time, the obvious one is for OPEC to increase production. However, in the long run with the worlds population increasing at the present rate, this problem is only the tip of the iceberg.

[Tom Anderson]

There is a very simple reason why the price of crude keeps going up. Our government's policy of preventing the increase in the supply of oil, atomic power, coal, and natural gas, is what is responsible for the high prices of oil and gasoline that we must now pay. Let it get out of the way, and the supply of all these forms of energy will dramatically increase and the price of oil and gasoline will fall, even more dramatically.

[Ron Lynch]

There are a myriad of reasons why other countries have lower or higher gasoline prices. Too many to detail. Lets stick with the US.

Doesn't it make sense that if President Bush had any control over oil prices they would not be high in an election year.

The present stock market bubble is alternative energy plays. People are goo goo over ethanol, solar, and wind but in the long run they will not ever provide a substantial percentage of our energy needs. We need to develop them but do it gradually as the energy market dictates.

I think OPEC and the oil companies realize they are at risk of causing permanent damage to oil demand if they keep prices high for too long. Once public mindset changes it is hard to reverse.

Some oil companies are happy with high prices at least for a short time but others such as refiners are hurt by falling margins.

The blame is on our legislators for not developing a comprehensive energy policy which includes everything including all sources and mandating higher mpg vehicles.

If it was not for a national security issue I would say let the market drive the direction of our energy policy. But the mix needs to include more oil drilling, offshore and ANWR, and nuclear.

I think oil prices will come down given the demand reduction we are experiencing in this country and when the Olympics are over in China, I think the the Chinese government will slow down their economic growth which will further reduce global oil demand.

Price controls are stupid. They create shortages. If you pass a
law prohibiting import of any oil over $30/bbl we would have a shortage of oil and consequent gasoline shortage. Prices go up.
Put price controls on gasoline and refiners stop producing to avoid losses.

The market is working demand for small cars is skyrocketing. The question is will this trend reverse when oil prices decline?

Bear in mind the President does not make laws (and this President doesn't have enough political clout to get Congress to give itself a pay raise). Don't make this a political issue except to encourage Congress to develop a comprehensive energy policy that includes all energy sources and mandating higher mpg vehicles.

[Patrick Gogan]

There is more than just a supply and demand issue with gas prices. Speculators who do not store a drop of oil are driving the price of gas up by at least 1/3. The CSPAN Congressional hearing covered this subject well. I was esp. impressed with the testimony of Dr.Greenberg. The US government has failed to regulate so-called foreign oil exchanges that are located in the US ( "I.C.E." based in Atlanta ) that trades West Texas crude.

The Bill before Congress does not have a chance of being passed under this present administration

[Pat Gogan]

Theses high gas prices are MORE than a supply & demand issues. Speculators who do not store or use one drop of oil have driven the price of gas up by at least 1/3. Congressional hearing of CSPAN made this point clear. I was esp. impressed with the testimony of Dr. Greenberg a former fed oil regulator. One of the major issues pointed out was that an oil exchange (I.C.E. a British/Atlanta based exchange) was NOT being regulated by the US government and which trades primarily in West Texas crude.

Even the Oil Minister of Saudi Arabia said that oil prices ars being manipulated by oil speculators and not supply and demand.

It is very unlikely that the oil speculation bill before Congress will pass this year with the current administration.

[Greg Deo]

The American Public has been fed a lot of "facts" regarding the soaring gas prices. However the main problem is rarely mentioned. This would be the price gouging being performed by the big oil companies. The American Public needs to use the power that it has to stop this from happening. We need to send them a message and get the gas prices lowered. I am associated with Americans For Change; a non-profit organization which has a sole purpose at the moment of lowering the gas prices. We have a plan that we know will work, however we need to get the American Public involved to make it happen. Exxon/Mobil is the biggest profit maker and is the target of our idea. Our plan is to boycott Exxon/Mobil. Once enough poeple do not buy from them they will have to lower their gas prices. From there the other companies will have to lower their gas prices to compete. Once the gas prices have been lowered to a reasonable price the boycott will be lifted. This process will be repeated if necessary. You can get more information at
www.americans-for-change.org.

[James Wittington]

People are losing jobs and homes at an alarming rate due to the energy crisis. The price of fuel has driven everything up from the increased production and shipping costs. I have yet to hear more than a candy coated one liner from both candidates as to their plans to bring Americans relief. Does either candidate even have a plan other than to spout off some oneliner about off shore drilling that will pacify a majority?

[David Stone]

Just when I think the whole world has gone crazy, someone posts an intelligent comment. Some of the comments here, (e.g., Bob Davis') make perfect sense. Why do articles such as this one assume that truth is determined by a popular vote? One thing I would add is that speculators may determine the price of oil short-term but they cannot overrule the law of supply and demand. If they run up the price of gas too high, then they artificially stimulate over-production and the price will eventually come down. Those who speculated too high will end up losing money on that bet. Eventually the price will be determined by market forces and not the speculators (or government, Saudi shieks, silly boycotts, etc.).

[D J A]

High gas is dut to the oil traders and oil companies just telling there dealers to up the pump price.