Consumer Gas Spending to Drop to Lowest Level in a Decade
WASHINGTON, D.C. — The average U.S. household will spend the lowest amount on gasoline in more than a decade, according to the recently released Consumer Expenditure Survey from the U.S. Bureau of Labor Statistics (BLS).
The average household is expected to spend $1,817 this year, about $700 less than 2014. The $1,817 figure represents the lowest average household figure since 2004.
The BLS is basing this estimate on a prediction U.S. average gas prices will be $2.40 in 2015, compared to $3.36 last year.
A lower average spend follows lower crude oil prices, which lead to lower gas prices at the pump. Better fuel economy and fewer miles traveled have also contributed to the lower spend per household.
Despite the excellent news for consumers this year, the BLS predicted the average U.S. household gasoline spend will rise in 2016. Next year, the average spend is expected to rise to $2,058 per household. This calculation reflects the expected change in gasoline prices but does not take into account more gradual changes in average fuel economy and driving behavior.
As always, predictions can be altered by a host of factors, including the possibility of geopolitical turmoil and refinery maintenance and outages.