How Gas Prices Are Affecting Consumers
As the national weekly average for regular gas continues to climb - now $3.59 a gallon, up 7 cents from last week, according to the U.S. Energy Information Administration - here's how soaring prices are affecting American consumers:
- The average American household spends $3,348 of its after tax income on gasoline and diesel.
- A 10 cent rise in prices means that the average household spends $93.25 more on gas and diesel per year.
- Every 10 cent rise in gas prices removes $11 billion from consumers wallets over the course of an year.
- Lower-income households are most sensitive to fluctuations in energy prices. Households in the lowest income quintile spend about 11 percent of their income on energy (which includes gasoline, natural gas and electricity), whereas households in the highest quintile spend 6.8 percent of their income on energy, according to the Bureau of Labor Statistics.
SOURCE: MOODY'S ANALYTICS