As Global Gas Prices Soar, 9 in 10 Car Owners Are Concerned About Being Able To Afford Gas

Across the countries in our study, 36 percent of drivers indicated they were “moderately” or “extremely” concerned about their ability to afford gasoline if prices continue to climb. More drivers said they were extremely concerned (16 percent) than not at all worried (10 percent).

Drivers from European Union nations were the most likely to report high levels of concern over their ability to afford gasoline — a combined 47 percent are “moderately” or “extremely” concerned. American and British drivers are much less concerned, with 28 percent and 32 percent, respectively, reporting high levels of fear over rising prices.

EU drivers may be the most concerned due to the centrality of Russian oil in their economies. Crude oil accounts for about two-thirds of energy imported into EU nations, and Russia alone provides about 27 percent of all crude oil imported by EU nations.

In contrast, U.S. refineries import about three percent of their crude oil from Russia, while UK refineries import about six percent, making them much less reliant on Russian crude oil.

Seventeen percent of American drivers said they aren’t at all concerned about rising gas prices, compared to 11 percent of British drivers and four percent of drivers in the EU. This could be because American drivers pay significantly less per gallon of gas than other regions.

During the week of Feb. 21-27, 2022, the average U.S. price per gallon for regular unleaded gas was $3.57. This is less than half of what drivers in the UK and many across the EU were paying.

Source: GlobalPetrolPrices.com

In most European countries, taxes on gasoline are much higher than in the U.S., which impacts the price at the pump, as does the rate at which countries import crude oil. For example, for UK drivers, about 56 percent of the cost of fuel is tax. Even in states where gas taxes are high, Americans still pay less than British drivers do.

Take California, for example, which levies taxes and fees of about 67 cents per gallon of gas. Combined with the 18.4-cent federal excise tax on gas, taxes only account about 18 percent of the total cost of a gallon of gas in the state.

How much people drive had some impact on how concerned drivers felt about elevated gasoline prices, though even people who don’t drive all that much were still concerned. In fact, people who drive only a few times a month were more likely than daily drivers to report feeling extreme or moderate concern.

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Perhaps because they are accustomed to fluctuating prices, most drivers had a few tactics in mind to mitigate elevated gas prices. The most common response to rising prices was driving less or taking shorter trips, followed by reducing spending in other areas (31 percent). For these people, pay-per-mile insurance might be a good idea to save even more on car insurance. That said, 28 percent of people said they weren’t taking any of the steps we laid out, which was the third most common response.

Cutting down on driving was the most common response regardless of the driver’s nationality, but drivers in the UK and EU were more likely than their American counterparts to say they’ve rode a bike, walked, or taken public transit to manage rising costs of gasoline.

While millions of Americans take public transit every year, 45 percent of people in the U.S. do not have access to any public transit systems where they live, which makes shifting trips to public transportation impossible for almost half of all Americans.

One response the average person doesn’t seem to be considering is the purchase of an all-electric (EV) vehicle or gas-electric hybrid vehicle. Overall, only 15 percent of people said they would likely buy an EV or hybrid in the next year.

EU drivers were more likely to say buying a hybrid or all-electric vehicle could be possible for them, but majorities of drivers across the EU, UK and U.S. all said it was unlikely they’d buy such a vehicle in the next year.

While electric cars and hybrids have become more affordable over the past decade, they still may be cost-prohibitive for many people. A Kelley Blue Book analysis found the average cost for a new electric vehicle in the U.S. is more than $50,000, about $11,000 higher than a full-size traditional fuel vehicle and nearly $30,000 more than a compact car.

Though presidents often shoulder the blame for high gas prices (it’s happened in both Republican and Democratic administrations), the reality is that the president doesn’t have much ability to directly influence the price at the pump.

The views of American drivers when it comes to President Joe Biden’s level of responsibility for rising gas prices depends on their existing opinions about Biden.

Overall, about 22 percent of American drivers said Biden is “completely” or “mostly” responsible for rising gas prices, but 67 percent of Republicans said the same. Similarly, while 41 percent of U.S. drivers overall say Biden bears no responsibility, 62 percent of Democrats said the same.

Blaming the president for high gas prices is nothing new, of course, but prices aren’t totally dependent on politics. The record high average for the U.S. was $4.11 in July 2008, when George W. Bush, a Republican, was president. They peaked again in March 2011 at about $3.91 during the administration of Barack Obama, a Democrat. The average price of a gallon of gas has climbed by nearly 90 cents over the past year.

Whether the ongoing conflict in Ukraine will continue to roil crude oil markets and impact the price at the pump remains to be seen, but with spring around the corner and more people taking to the roads as the weather gets warmer, it’s probably safe to say that drivers should brace for even higher prices in the months to come. As gas prices fluctuate widely, many people look for car insurance discounts to lower the cost of insurance, as well.

We surveyed 1,520 car owners in European Union countries, as well as in the UK and U.S. about their concern over rising gasoline prices and what steps, if any, they were taking to deal with the added expense.

To qualify for the study, participants had to own a car and drive it at least once a month. Respondents were 50% female and 50% male. 47% of American respondents were Democrats, 15% were Republicans, and 37% were members of other parties or had no affiliations. Our research was conducted online in late February 2022. Current gas price data as of February 22, 2022 were gathered from globalpetrolprices.com.