- Americans drove a combined 3.196 trillion miles in 2022, with light-duty vehicles accounting for 88% of all travel.
- The national average gasoline price peaked at $4.06 per gallon in 2022, the highest annual average since EIA records began.
- New vehicle fuel economy reached a record 27.2 MPG in model year 2024, more than doubling from 13.1 MPG in 1975.
- The average American household spent $13,174 on transportation in 2023, with approximately $2,449 going to gasoline alone.
01 Introduction
Transportation is the second-largest annual expenditure for American households, trailing only housing. In 2023, the average U.S. household spent $13,174 on transportation, representing 17.0% of total expenditures. Of that, gasoline and motor oil accounted for approximately $2,449.
U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, 2023 Annual ReportYet the actual fuel cost for any individual driver depends on three variables that differ dramatically from person to person: how far you drive, how efficient your vehicle is, and what you pay for fuel. This article examines each variable using exclusively U.S. government data to show what driving really costs in America.
Basic common-sense analysis of fuel cost components (Miles ÷ MPG × Price)Every statistic, chart, and table in this article is sourced from one of four federal agencies: the Environmental Protection Agency (EPA), the Energy Information Administration (EIA), the Federal Highway Administration (FHWA), and the Bureau of Labor Statistics (BLS). No industry estimates, proprietary models, or third-party data are used.
Data sourcing methodology. All agencies publish under 17 U.S.C. § 105 (U.S. public domain)02 How Much Americans Drive
In 2022, motor vehicles in the United States traveled a combined 3.196 trillion miles. Light-duty vehicles (passenger cars, SUVs, vans, and light trucks) accounted for approximately 2.823 trillion of those miles, or 88% of total vehicle miles traveled (VMT).
Federal Highway Administration, Highway Statistics 2022, Table VM-1| Vehicle Type | Annual VMT (millions) | Share |
|---|---|---|
| Light Duty, Short Wheelbase | 2,137,805 | 66.9% |
| Light Duty, Long Wheelbase | 684,859 | 21.4% |
| Combination Trucks | 195,049 | 6.1% |
| Single-Unit Trucks | 136,224 | 4.3% |
| Motorcycles | 23,765 | 0.7% |
| Buses | 18,490 | 0.6% |
| Total | 3,196,192 | 100% |
Dividing total light-duty VMT by the approximately 283.4 million registered light-duty vehicles in the U.S. yields a rough average of about 9,960 miles per vehicle per year. However, actual individual mileage varies widely. The FHWA default planning estimate is 13,500 miles per year, while the EPA uses 15,000 miles per year for its annual fuel cost label calculations.
Federal Highway Administration, Highway Statistics 2022, Tables VM-1 and MV-1; EPA Fuel Economy Label methodology03 Fuel Prices Over Time
Gasoline prices are the most volatile component of driving cost. The national annual average price of regular-grade gasoline has ranged from $1.07 per gallon in 1995 to $4.06 per gallon in 2022, a nearly four-fold difference within three decades.
U.S. Energy Information Administration, Petroleum & Other Liquids, U.S. Regular All Formulations Retail Gasoline Prices, AnnualPrices are not uniform across the country. In 2025, the West Coast (PADD 5) averaged $4.23 per gallon while the Gulf Coast (PADD 3) averaged $2.78 per gallon, a difference of $1.45 per gallon, or 52%. For a driver consuming 500 gallons per year, this regional spread translates to a $725 annual cost difference from geography alone.
U.S. Energy Information Administration, Petroleum & Other Liquids, Regular Gasoline Prices by PADD District, 2025 Annual AverageThe 2022 price spike was driven by global petroleum supply disruptions. Gasoline expenditures for the average American household surged 44% in 2022 to approximately $3,120, before falling 12.7% in 2023 to approximately $2,449 as prices moderated.
U.S. Bureau of Labor Statistics, Consumer Expenditure Survey, 2022 and 2023 Annual Reports; FRED Series CXUGASOILLB0101M04 Fuel Economy Trends
The EPA has tracked the real-world fuel economy of new light-duty vehicles since 1975 through its Automotive Trends Report. Over 50 model years, fleet-average fuel economy has more than doubled, from 13.1 MPG in 1975 to an estimated 27.2 MPG in model year 2024.
U.S. Environmental Protection Agency, Automotive Trends Report 2025, “50 Years of EPA’s Automotive Trends Report”The trend reveals three distinct eras. From 1975 to 1987, fuel economy improved rapidly from 13.1 to 22.0 MPG as the original Corporate Average Fuel Economy (CAFE) standards took effect. From 1988 to 2004, fuel economy stagnated and actually declined slightly to 19.3 MPG as consumers shifted toward larger SUVs and light trucks while CAFE standards remained flat. Since 2005, fuel economy has resumed climbing to the current record of 27.2 MPG, driven by updated CAFE standards and growing electric vehicle adoption.
U.S. Environmental Protection Agency, Automotive Trends Report 2025; CAFE standard history per NHTSA regulationsWithout battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), the 2024 fleet average would have been 1.7 MPG lower. Truck SUVs, now representing 50% of all new vehicle production, reached 25.7 MPG in model year 2024, an increase of 1.0 MPG from 2023.
U.S. Environmental Protection Agency, Highlights of the Automotive Trends Report, Model Year 2024 Data| Era | Start MPG | End MPG | Change |
|---|---|---|---|
| 1975 to 1987 (CAFE ramp-up) | 13.1 | 22.0 | +8.9 |
| 1988 to 2004 (SUV era stagnation) | 21.9 | 19.3 | −2.6 |
| 2005 to 2024 (modern improvement) | 19.9 | 27.2 | +7.3 |
05 Calculating Your Annual Fuel Cost
Annual fuel cost is the product of three factors: miles driven, vehicle fuel economy, and fuel price. The fundamental formula is straightforward arithmetic:
Basic arithmetic relationship between distance, fuel efficiency, and priceFor example, a vehicle rated at 25 MPG driven 12,000 miles per year at $3.42 per gallon costs $1,642 annually in fuel: (12,000 ÷ 25) × $3.42 = $1,642.
Calculation example using 2024 national average gasoline price from EIA ($3.424/gal) and EPA fleet average (~25 MPG class)The interactive matrix below shows how annual fuel cost varies across a range of fuel economies (15 to 50 MPG) and fuel prices ($2.00 to $5.00/gal) at a fixed 12,000 miles per year. The relationship is non-linear: improving from 15 to 25 MPG saves far more money than improving from 35 to 45 MPG at any given fuel price.
Calculated values using formula: 12,000 ÷ MPG × Price. Non-linearity follows from the mathematical property of reciprocal functions (1/MPG)Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator06 City vs Highway Driving Impact
EPA rates every vehicle with separate city and highway fuel economy numbers. City driving is consistently less fuel-efficient than highway driving due to frequent acceleration, idling, and lower average speeds. The EPA's standard test cycle assumes 55% city and 45% highway driving for combined ratings.
U.S. Environmental Protection Agency, Fuel Economy Testing and Labeling, 5-Cycle Testing MethodologyThe gap between city and highway fuel economy varies by vehicle type and powertrain. Conventional gasoline vehicles typically achieve 20 to 40% better fuel economy on the highway compared to city driving. For a vehicle rated at 25 MPG city and 33 MPG highway, a driver doing 80% city driving versus 80% highway driving would see a fuel cost difference of over $400 per year at 12,000 miles and $3.42/gal.
EPA fuel economy ratings methodology; cost difference calculated from standard formula at stated parametersFor individual drivers, the city/highway split is one of the most controllable variables affecting fuel cost. Commuters in dense urban areas with heavy stop-and-go traffic will experience costs closer to the city rating, while long-distance highway commuters will approach the highway rating. The EPA's default 55/45 city/highway split is a national average and may not reflect individual patterns.
EPA 5-Cycle Testing Methodology; city/highway split reflects national driving pattern estimates07 The Full Picture
The cost of driving in America is shaped by the interaction of three government-measurable factors: total miles driven (FHWA), fuel prices (EIA), and vehicle efficiency (EPA). For the average American household, gasoline represents approximately 18.6% of total transportation spending and 3.2% of total household expenditures.
Calculated from BLS Consumer Expenditure Survey 2023: $2,449 gasoline / $13,174 transportation = 18.6%; $2,449 / $77,280 total expenditures = 3.2%Over a five-year period at the 2024 national average price of $3.42/gal, a vehicle achieving the current fleet average of 27.2 MPG driven 12,000 miles per year would consume approximately 2,206 gallons and cost $7,544 in fuel. The same vehicle at 2022 peak prices ($4.06/gal) would cost $8,955, an additional $1,411 for the same driving.
Calculated: (12,000 × 5) ÷ 27.2 = 2,206 gal; 2,206 × $3.424 = $7,544; 2,206 × $4.059 = $8,955. Prices from EIA; MPG from EPA Automotive Trends Report 2025Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator08 Data Sources
- Federal Highway Administration: Highway Statistics 2022, Table VM-1: Annual Vehicle Miles Traveled. fhwa.dot.gov
- U.S. Energy Information Administration: Petroleum & Other Liquids, U.S. Regular All Formulations Retail Gasoline Prices, Annual. eia.gov
- U.S. Energy Information Administration: Petroleum & Other Liquids, Regular Gasoline Prices by PADD District, 2025. eia.gov
- U.S. Environmental Protection Agency: Automotive Trends Report 2025: Greenhouse Gas Emissions, Fuel Economy, and Technology since 1975. epa.gov
- U.S. Environmental Protection Agency: 50 Years of EPA's Automotive Trends Report, historical fleet-average fuel economy data. epa.gov
- U.S. Bureau of Labor Statistics: Consumer Expenditure Survey, 2023 Annual Report. bls.gov
- U.S. Environmental Protection Agency: FuelEconomy.gov Vehicle Database and Fuel Economy Labeling Methodology. fueleconomy.gov