Annual Fuel Cost of Owning a Car

Key Findings

The average American household spends $2,694 per year on gasoline, representing about 2.6% of pre-tax income.
Annual fuel costs range from $1,274 for a midsize car to $2,033 for a standard/full-size pickup truck at current gas prices.
Driving 12,000 miles per year at $3.10/gallon, fuel costs $1,368 at 27.2 MPG (fleet average) and $930 at 40 MPG.

Sources: BLS Consumer Expenditure Survey 2023; EPA, The 2025 Automotive Trends Report (EPA-420-R-26-001); EIA Weekly Retail Gasoline Prices

Contents

Average Annual Fuel Cost
Fuel Cost by Vehicle Type
Factors That Determine Your Fuel Cost
The Value of Fuel Economy
Data Sources

01 Average Annual Fuel Cost

According to the Bureau of Labor Statistics Consumer Expenditure Survey, the average American household spent $2,694 on gasoline and other fuels in 2023. This figure covers all household vehicles and all driving purposes combined.

BLS, Consumer Expenditure Survey multiyear tables (2021–2024), "Gasoline and other fuels" average annual expenditure, 2023

For a single vehicle driven 12,000 miles per year at the current fleet average fuel economy of 27.2 MPG (model year 2024, EPA's 2025 Automotive Trends Report) and a gasoline price of $3.10 per gallon, the annual fuel cost works out to approximately $1,368.

Calculated: 12,000 mi ÷ 27.2 MPG × $3.10/gal = $1,368. Fleet average from EPA, The 2025 Automotive Trends Report (EPA-420-R-26-001), Table 2.1; price reference EIA, Short-Term Energy Outlook, September 2026, Table 2: Energy Prices; 2025 annual average regular gasoline retail price.

Annual Fuel Cost Formula Annual Cost = (Miles ÷ MPG) × Price per Gallon

The wide range in household spending reflects differences in the number of vehicles owned (the average household has 1.9 vehicles), miles driven, vehicle fuel economy, and regional gas prices.

BLS Consumer Expenditure Survey, 2023; FHWA Highway Statistics, Table VM-1: average vehicles per household

02 Fuel Cost by Vehicle Type

Vehicle type is the single largest determinant of annual fuel cost. The EPA assigns fuel economy ratings to every vehicle sold in the United States. Using these ratings with 12,000 miles per year and $3.10 per gallon of regular gasoline (EIA, Short-Term Energy Outlook, September 2026, Table 2: Energy Prices; 2025 annual average), annual fuel costs vary dramatically by class.

EPA/DOE Fuel Economy Guide database, gasoline-fueled vehicles (including hybrids), model years 2024–2025 (unweighted average of comb08 by EPA VClass); see this site's fuel cost per mile by vehicle class analysis for the full methodology

EPA Vehicle Class	Avg Combined MPG	Annual Gallons	Annual Fuel Cost
Midsize Car	29.2	411	$1,274
Compact Car	28.2	426	$1,319
Minivan	26.5	453	$1,404
Small SUV / Crossover	26.1	460	$1,425
Large Car	25.0	480	$1,488
Subcompact Car	23.1	519	$1,610
Small/Compact Pickup	22.3	538	$1,668
Midsize/Large SUV	19.6	612	$1,898
Standard/Full-Size Pickup	18.3	656	$2,033

Class average MPG computed directly from the EPA/DOE Fuel Economy Guide database (unweighted average of comb08 by EPA VClass, model years 2024–2025). Annual cost calculated: 12,000 mi ÷ MPG × $3.10/gal (EIA, Short-Term Energy Outlook, September 2026, Table 2: Energy Prices; 2025 annual average regular gasoline retail price). Trucks above roughly 8,500–10,000 lbs GVWR ("heavy-duty" 2500/3500-series pickups) are largely exempt from EPA fuel economy testing and are not included.

The gap between a midsize car ($1,274/year) and a standard/full-size pickup ($2,033/year) is over $750 per year, or roughly $3,800 over five years of ownership.

Estimate your vehicle's driving cost using official EPA fuel economy data.

Use the Calculator

03 Factors That Determine Your Fuel Cost

Three variables control your annual fuel expenditure:

Miles driven per year. FHWA Table VM-1 reports 11,327 miles per motor vehicle in 2022.
Vehicle fuel economy. EPA combined ratings of gasoline-fueled 2024 and 2025 configurations range from 9 MPG to 57 MPG. At 12,000 miles and $3.10 per gallon, a 5 MPG improvement saves about $177 per year from 30 to 35 MPG and about $372 per year from 20 to 25 MPG.
Gasoline price. The EIA national average has ranged from $1.77 (April 2020) to $5.01 (June 2022) in recent years. Every $0.50 increase adds about $231 per year at 12,000 miles and 26 MPG.

FHWA Highway Statistics, Table VM-1; EPA Fuel Economy Guide; EIA Weekly Retail Gasoline Prices

04 The Value of Fuel Economy

For drivers considering their next vehicle purchase, choosing a model with even a modest fuel economy improvement yields significant long-term savings. Moving from 20 MPG to 30 MPG at 12,000 miles per year and $3.10/gallon saves $620 per year, or $3,100 over a typical five-year ownership period.

Calculated: (12,000/20 − 12,000/30) × $3.10 = $620/year

Estimate your vehicle's driving cost using official EPA fuel economy data.

Use the Calculator

05 Data Sources

BLS: Consumer Expenditure Survey, 2023 Annual Report. bls.gov/cex
EPA: The 2025 Automotive Trends Report (EPA-420-R-26-001). epa.gov/automotive-trends
EIA: Weekly Retail Gasoline and Diesel Prices. eia.gov
FHWA: Highway Statistics, Table VM-1. fhwa.dot.gov
Congressional Research Service: IN12320, IRS Standard Mileage Rates for 2026. irs.gov

Disclaimer. This article is for informational purposes only and does not constitute financial, legal, or professional advice. All data is sourced from U.S. government agencies as cited. Annual fuel costs are estimates based on EPA combined fuel economy ratings and EIA national average gasoline prices. Actual costs vary based on individual driving habits, vehicle condition, geographic location, and current fuel prices. Total ownership cost ranges are approximations and will differ by vehicle, financing terms, and location.