Ann Saphir and Jason Lange

WASHINGTON (Reuters), a Reuters/Ipsos poll found that Americans are likely to reduce their consumption of restaurant meals and movie tickets if fuel prices rise due to Russia’s invasion in Ukraine.

The poll revealed that 54% Americans expect to cut back on dining out when gasoline prices go up to $6 to $7 per gallon. 49 percent stated that they would reduce spending on movies or other entertainment. 60% of respondents said that they wouldn’t drive as far to enjoy leisure activities.

The average gasoline price for Thursday at the pumps was approximately $4.32, up from $3.48 one month ago. If oil prices reach $200/barrel, gasoline prices may rise as high as $6-$7 per gallon.

Washington and its allies responded to Russia’s attack against Ukraine in the third week with unprecedented sanctions, which include a ban by the U.S. on Russian energy imports.

Russia’s economy is in a tailspin due to the sanctions. U.S. citizens are also paying the costs of Russia’s conflict. This has led to higher gasoline prices, which have reached record levels. It is putting pressure on household budgets.

Respondents to the survey indicated that 47% would reduce their spending on household improvements, such as furniture or appliances, if petrol prices continue rising.

Bank of America’s (NYSE:) economist Anna Zhou reported that consumers with lower incomes are already reducing some purchases. This was based on slower credit card purchase growth of clothes in the past four weeks to March 5.

Bank said that lower income customers were using credit cards more than debit cards to purchase gasoline. This may be indicative of financial stress.

Eighty-two percent of the poll respondents spend at least $100 weekly on fuel, while another third spends more than $100 each week.

Many Americans feel that sanctions, despite the higher fuel costs, are worth it because of the Russian invasion.

However, the economic outlook may remain the same regardless of the fact that gas prices are on the rise.

Robert Dent, Nomura economist, stated that “In normal times higher crude oils prices always translate to weaker real consumers spending.”

However, these are different times. U.S. households may have an excess of $2.6 trillion from their lives during the pandemic. Dent explained that this cash is available to them as they are able to spend regardless of rising prices. Dent stated, “The fundamentals for aggregate demand and growth remain extremely strong.”

According to the poll, Americans won’t feel forced to reduce their basic needs by higher gasoline prices.

For example, 64% said that higher gasoline prices would not affect their spending on medicine, while 58% predicted no changes to utilities. About half stated that grocery shopping would remain the same. 28% of respondents expected to spend less, and 18% anticipated spending more.

The Reuters/Ipsos online poll, which was in English and collected responses from 1,005 adults, took place on Wednesday and Friday throughout the United States. A credibility interval (a measure of precision) is approximately four percentage points.