According to research from the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook, the average U.S. household spent $1,977 on gasoline in 2017. This value is approximately 2.4 percent of household income and a significant decrease from the $2,715 annual average in 2008.
According to the EIA, household gasoline expenditures have fluctuated over the past ten years due to both changes in gasoline prices and consumption – with both trending downwards in recent years. When gasoline prices are relatively high, more of a household’s income is devoted to gasoline expenditures, leading to lower gasoline consumption and industry-wide efforts to improve fuel economy.
Declines in gasoline prices since 2012, however, have led to increases in vehicle travel and increases in gasoline consumption. Some of this consumption increase can also be attributed to a spike in truck and SUV sales – vehicles that consume more gas than a passenger car or mini-van.
Based on the EIA’s latest projections, continued low gasoline prices are expected to lead to record levels of gas consumption that could climb as high as 9.3 million barrels per day for 2017. This level corresponds with current average daily U.S. production levels of just under 18 million barrels per day. The EIA also estimates that gas prices will average $2.48 per gallon in 2017, which is 33 percent lower than the price in 2012.