US consumers expect gas prices to surge 50% two years from now

Article by Christian A., on February 23, 2015

Consumers in the United States are not so positive that gas prices in the country would remain low, according to a national survey by the Consumer Federation of America. The survey showed that consumers believe that two years from now, gas prices will surge 50 percent to $3.20 and 80 percent to $3.90 five years from today.

Mark Cooper, director of research at CFA, noted that consumer expectations do match the last major drop and surge in gas prices (2009-2014), adding that consumers understand that when gas goes down, it would also go up. The CFA also analyzed the last drop and surge in gas prices. In January 2009, the monthly average price of gas was at $1.84 a gallon.

In 2014, the monthly average jumped $3.36. Back in 2009, low gas prices had more consumers buy lower mileage vehicles. Five years later, these lower mileage vehicles proved to be a financial burden. In fact, a consumer who purchased a 15-mpg vehicle in 2009 would shell out $6,400 more over five years than someone who acquired a 25 mpg vehicle.

According to the CFA, at the time, a consumer could choose between vehicles with 15 mpg and 25 mpg, without moving to a different class. Cooper remarked purchasing an inefficient vehicle when gas prices are low “condemns” the consumer to wider swings in monthly costs, higher monthly peaks and an overall hike in lifetime gas costs.

CFA also compared the five-year gas costs of buying an 18 mpg vehicle versus buying a 28 mpg vehicle now. Using the average prices projected by consumers in the survey, CFA said that a buyer of an 18 mpg vehicle would spend $5,000 more on gas in the next five years than a buyer of a 28 mpg vehicle.

Jack Gillis, director of public affairs at CFA, noted that today, it has become easy to make a fuel-efficient choice within nearly every vehicle category. According to the survey, consumers wanted the gas mileage of their vehicles to be 30 mpg, compared to the 25 mpg of their current units. He said that it is no surprise that consumers want more fuel efficiency although the current gas prices are low.

Topics: united states

If you liked the article, share on:

Comments

Recommended

The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries