- Gasoline's share of household spending peaked at 4.3% of pre-tax income in 2008, fell to a low of 1.9% in 2020, and sits at about 2.6% in 2023.
- Average household gasoline spending was $2,694 in 2023, nominally about 3% higher than 2013's $2,611, despite fleet fuel economy improving over that span.
- Improving fleet fuel economy (21.0 MPG in 1984 to 27.1 MPG in 2023, real-world production-weighted) 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
Gasoline spending peaked at 4.3% of pre-tax household income in 2008, fell to a low of 1.9% in 2020, and sits at about 2.6% in 2023, with average household gasoline spending of $2,694 in 2023. 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, "Average annual expenditures and characteristics of all consumer units," multi-year tables (`cu-all-multi-year-2000-2005.xlsx` through `cu-all-multi-year-2021-2024.xlsx`), gasoline expenditure line item| Year | Avg Gas Price (EIA) | Household Fuel Spending | Key Event |
|---|---|---|---|
| 2000 | $1.48 | $1,291 | n/a |
| 2004 | $1.85 | $1,598 | n/a |
| 2006 | $2.57 | $2,227 | Post-Katrina prices |
| 2008 | $3.25 | $2,715 | Oil spike to $147/bbl |
| 2010 | $2.78 | $2,132 | Post-recession recovery |
| 2012 | $3.62 | $2,756 | Sustained high prices |
| 2014 | $3.36 | $2,468 | Shale oil boom begins |
| 2016 | $2.14 | $1,909 | Oil price collapse |
| 2018 | $2.72 | $2,109 | n/a |
| 2020 | $2.17 | $1,568 | Pandemic VMT drop |
| 2022 | $3.95 | $2,805 | Post-invasion spike |
| 2023 | $3.52 | $2,694 | Prices moderate |
The 2022 figure of $2,805 was the highest nominal household fuel spending in this series, driven by gasoline prices that averaged nearly $4.00 per gallon. By 2023, spending had retreated to $2,694 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 | $101,805 | $2,694 | 2.6% |
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.
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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's real-world fuel economy series, the production-weighted average new vehicle fuel economy has improved from 21.0 MPG in model year 1984 to 27.1 MPG in model year 2023, a 29% improvement.
EPA, The 2025 Automotive Trends Report (EPA-420-R-26-001), p. 12, Table 2.1: Production and Fuel Economy for Model Year 1975–2025This improvement means that a driver covering 12,000 miles per year purchases 128 fewer gallons annually than an equivalent driver in 1984 would have (571 gallons at 21.0 MPG vs. 443 gallons at 27.1 MPG). At $3.30 per gallon (EIA average), that improvement saves $425 per year.
Calculated: (12,000/21.0 − 12,000/27.1) × $3.30 = $425. 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 138% (from $1.48 to $3.52). But household gasoline spending increased by only 109% ($1,291 to $2,694). Adjusted for inflation using DOE's published CPI adjuster (which converts $1 in 2000 to $1.76 in 2023 dollars), the real increase is just 18.6%: $1,291 in 2000 is equivalent to $2,272 in 2023 dollars, versus $2,694 actually spent.
EIA retail gasoline price history; BLS Consumer Expenditure Survey; DOE Alternative Fuels Data Center, "Average Annual Retail Price of Gasoline, 1950–2023" (includes BLS CPI-based inflation adjuster, rebased to 2023 dollars)Factors that help explain this divergence:
- Better fuel economy. The 29% improvement in new-vehicle real-world MPG from 1984 to 2023 means fewer gallons consumed per mile for newer vehicles.
- Vehicle mix shifts. While Americans buy more trucks and SUVs, those vehicles have become substantially more efficient within their classes.
- Driving behavior. Total vehicle miles traveled per capita has not grown as fast as gas prices over this period, though we don't have a single-file time series in our own dataset to pin down an exact peak year.
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, "Average annual expenditures" multi-year tables, 2000–2024. bls.gov/cex
- EIA: Weekly Retail Gasoline and Diesel Prices (U.S. Regular All Formulations series). eia.gov
- EPA: The 2025 EPA Automotive Trends Report (EPA-420-R-26-001). epa.gov/automotive-trends
- FHWA/DOT: 2022 National Household Travel Survey, vehicle file. nhts.ornl.gov
- DOE: Alternative Fuels Data Center, "Average Annual Retail Price of Gasoline, 1950–2023" (includes BLS CPI-based inflation adjuster). afdc.energy.gov/data