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CNN Sunday Morning

Rising Gas Prices Cause Consumer Crunch

Aired May 13, 2001 - 07:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Rising gasoline prices are forcing many of us to pay closer attention to how many miles per gallon our automobiles get. And in Washington, there's renewed focus on whether the government should step in and raise fuel efficiency standards for cars and SUVs. CNN's Kelly Wallace reports.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT (voice-over): Rick Clemons, a financial adviser, pays about $75 a week for gas, but with prices at the pump climbing, he is considering giving up his SUV, which only gets 13 miles to the gallon in the city.

RICK CLEMONS: Gas prices will supposedly go up to $3. And if you get up that high, I would definitely have to sell this.

WALLACE: SUVs like Rick's, minivans and other like trucks now account for half the vehicles on the roads in the United States, a huge leap from 1975 when faced with an energy crisis caused by the OPEC oil embargo, Congress first ordered the auto industry to make more gasoline efficient cars.

The so-called fuel economy standard for passenger cars is now 27.5 miles per gallon. But for light trucks such as SUVs, it remains 20.7 miles per gallon. A bipartisan Senate bill calls for raising that standard to equal that of passenger cars by 2007.

SEN. DIANNE FEINSTEIN (D), CALIFORNIA: There is no earthly reason why SUVs and light trucks shouldn't be as fuel efficient as sedans. We're giving them six years to do it, and the bang for the buck is enormous.

WALLACE: The proposal's supporters say would translate into a savings of more than $300 for the average motorist paying $1.50 per gallon of gas, reduce carbon dioxide emissions and slash oil imports by 10 percent.

But automakers say more fuel efficient cars would be more lightweight and possibly not as safe and more expensive to produce, meaning higher sticker prices for consumers.

JOSEPHINE COOPER, ALLIANCE OF AUTO MANUFACTURERS: The challenge for automakers, when you mandate a requirement is that you can't mandate that people buy whatever it is you force them to make. WALLACE: Cost and safety concerns prompted Congress, in 1995, to impose a moratorium on raising corporate average fuel economy or so- called CAFE standards.

But last year lawmakers asked for a nonpartisan study. Vice President Cheney said the White House is waiting for that report.

RICHARD CHENEY, VICE PRESIDENT OF THE UNITED STATES: Well, we'll recommend us taking a look at the results of that study and then deciding whether or not we want to go forward with some change in the CAFE standards as well.

WALLACE (on camera): That report is due out in July, the height of the summer travel season. And if drivers continue to see higher prices at the pump, pressure may grow on the administration to increase standards for fuel efficiency.

Kelly Wallace, CNN Washington.

(END VIDEOTAPE)

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