U.S. Households Are Now Spending $5,000 Per Year on Gas
May 17, 2022
Gas prices continue to surge, and the annual amount American households are spending to fill their tank is nearly double what it was last year.
U.S. households are now spending the equivalent of $5,000 per year on gasoline, according to Yardeni Research. That’s up from $2,800 last year.
As recently as March, the annual rate of gasoline spending was at $3,800, according to Yardeni.
The price of gasoline was $3.04 per gallon a year ago, according to AAA. This week, the national average rose to an all-time high of $4.59, and all 50 states have an average price above $4, according to AAA data.
Yardeni’s researchers noted that the surging cost of gasoline explains why consumer sentiment has fallen so dramatically in recent months but expressed “wonder” that retail sales have remained so strong during April and May.
Retail sales data for April showed retail sales rose 8.2% from a year earlier.