U.S. consumer spending on gasoline surged by 16% year-over-year in March as the national average price hit a record $4.12 per gallon. The increase, attributed to geopolitical tensions, has led Americans to spend 25% more on fuel compared to February, putting pressure on household budgets.
U.S. gas prices are rising steadily due to disruptions from international conflict, pressuring consumer spending. Americans spent an average of 16% more on gas year-over-year in March as the national gasoline average soared to $4.12 a gallon.
Overall fuel spending surged by 25% in March compared to February. “US consumers are seeing huge increases in gas costs,” a recent market analysis stated.
The analysis noted that other spending categories have not been significantly impacted yet. Entertainment spending jumped 12% year-over-year last quarter, followed by travel at 6% and retail at 5%.
Total credit and debit card spending rose 6% year-over-year in the first quarter. “If elevated fuel costs persist, they will begin to crowd out spending in discretionary categories,” the analysis warned.
In response, U.S. energy leaders are planning discussions with industry executives. According to a Reuters report, the heads of the Interior and Energy Departments will hold a call with CEOs from companies including Exxon and Chevron.
The call aims to address the energy price spikes and bolster output. It is scheduled to take place at the White House.
