- Gasoline's share of household spending peaked at 3.3% of pre-tax income in 2008 and has declined to approximately 1.9% today.
- Average household gasoline spending was $2,645 in 2023 versus $2,756 in 2013 (inflation-adjusted), a 4% real decrease despite higher nominal prices.
- Improving fleet fuel economy (19.9 MPG in 1984 to 26.4 MPG today) has offset much of the rise in gas prices.
- The lowest point in recent spending was 2020 ($1,568) when pandemic driving reductions combined with low gas prices.
01 25-Year Spending Timeline
The Bureau of Labor Statistics Consumer Expenditure Survey tracks how much American households spend on gasoline and motor oil each year. Over the past 25 years, this figure has fluctuated dramatically with gas prices, economic conditions, and driving patterns.
BLS, Consumer Expenditure Survey, Annual Reports 1998–2023, Table 1110: "Gasoline, other fuels, and motor oil"| Year | Avg Gas Price (EIA) | Household Fuel Spending | Key Event |
|---|---|---|---|
| 2000 | $1.51 | $1,291 | — |
| 2004 | $1.88 | $1,568 | — |
| 2006 | $2.59 | $2,227 | Post-Katrina prices |
| 2008 | $3.27 | $2,715 | Oil spike to $147/bbl |
| 2010 | $2.79 | $2,132 | Post-recession recovery |
| 2012 | $3.64 | $2,756 | Sustained high prices |
| 2014 | $3.37 | $2,468 | Shale oil boom begins |
| 2016 | $2.14 | $1,909 | Oil price collapse |
| 2018 | $2.74 | $2,109 | — |
| 2020 | $2.17 | $1,568 | Pandemic VMT drop |
| 2022 | $3.97 | $2,994 | Post-invasion spike |
| 2023 | $3.52 | $2,645 | Prices moderate |
The 2022 figure of $2,994 was the highest nominal household fuel spending on record, driven by gasoline prices that averaged nearly $4.00 per gallon. By 2023, spending had retreated to $2,645 as prices moderated.
02 Gasoline as a Share of Income
While nominal spending fluctuates with gas prices, gasoline's share of household income provides a more meaningful picture of the burden on family budgets. The BLS data shows a clear long-term decline in this share.
BLS Consumer Expenditure Survey: gasoline spending as percentage of pre-tax income, calculated from annual reports| Year | Avg Pre-Tax Income | Fuel Spending | Share of Income |
|---|---|---|---|
| 2000 | $44,649 | $1,291 | 2.9% |
| 2008 | $63,563 | $2,715 | 4.3% |
| 2012 | $65,596 | $2,756 | 4.2% |
| 2016 | $74,664 | $1,909 | 2.6% |
| 2020 | $84,352 | $1,568 | 1.9% |
| 2023 | $94,003 | $2,645 | 2.8% |
Even with the 2022 price spike, gasoline's income share remained below its 2008 peak because household incomes have risen substantially over the period. The long-term trend is clear: fuel is becoming a smaller share of the household budget, though it remains a significant expense for lower-income households.
Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator03 The Fuel Economy Offset
One of the most important reasons fuel spending hasn't risen proportionally with gas prices is the steady improvement in fleet fuel economy. According to the EPA Automotive Trends Report, the average new vehicle fuel economy has improved from 19.9 MPG in 1984 to 26.4 MPG in 2023—a 33% improvement.
EPA, "The 2023 EPA Automotive Trends Report," Table 3.1: adjusted fuel economy, production-weightedThis improvement means that a driver covering 12,000 miles per year purchases 151 fewer gallons annually than an equivalent driver in 1984 would have (603 gallons at 19.9 MPG vs. 455 gallons at 26.4 MPG). At $3.00 per gallon, that improvement saves $454 per year.
Calculated: (12,000/19.9 − 12,000/26.4) × $3.00 = $454. EPA fleet average data.04 Gas Prices vs Actual Spending
The gap between gas price changes and actual spending changes reveals the combined effect of fuel economy improvements and shifts in driving behavior. Since 2000, the average retail gas price has increased by approximately 133% (from $1.51 to $3.52). But household gasoline spending increased by only 105% ($1,291 to $2,645), and when adjusted for inflation, the increase is far smaller.
EIA retail gasoline price history; BLS Consumer Expenditure Survey; BLS CPI-U for inflation adjustmentThree factors explain this divergence:
- Better fuel economy. The 33% improvement in new-vehicle MPG since 1984 means fewer gallons consumed per mile.
- Reduced driving in some years. Total VMT per capita peaked in 2004 and has been relatively flat since, according to FHWA data.
- Vehicle mix shifts. While Americans buy more trucks and SUVs, those vehicles have become substantially more efficient within their classes.
05 What the Trends Suggest
Several factors will shape household fuel spending in the coming years:
- Continued fuel economy gains. CAFE standards require fleet averages to continue improving, meaning fewer gallons consumed per mile for new vehicles.
- Electric vehicle adoption. EVs have zero gasoline cost. As EV adoption grows, it shifts transportation energy spending from gasoline to electricity.
- Crude oil price uncertainty. Gas prices remain fundamentally tied to global crude oil markets, which are subject to geopolitical and supply factors.
- Income growth. If household incomes continue to outpace fuel costs, gasoline's share of the budget will continue to decline.
06 Data Sources
- BLS: Consumer Expenditure Survey, Annual Reports 1998–2023. bls.gov/cex
- EIA: Weekly Retail Gasoline and Diesel Prices. eia.gov
- EPA: Automotive Trends Report (2023). epa.gov/automotive-trends
- FHWA: Highway Statistics, Table VM-1. fhwa.dot.gov
- ORNL: Transportation Energy Data Book, Edition 41. tedb.ornl.gov