Hourseholds Spending The Least on Gasoline in 11 Years - Consumers

  April 6, 2015

This past quarter, the EIA released estimates

showing that the average U.S. household is expected to spend about $550 less on gasoline in 2015 compared with 2014, as annual motor fuel expenditures are on track to fall to their lowest level in 11 years.  Lower fuel expenditures are attributable to a combination of falling retail gasoline prices and more fuel- efficient cars and trucks that reduce the number of gallons used.  

Household gasoline costs are forecast to average $1,962 in 2015, assuming that EIA’s price forecast is accurate. Should the forecast be realized, gasoline in 2015 would be below $2,000 for the first time since 2009, according to EIA’s December 2014 Short-Term Energy Outlook (STEO). 

Increases in fuel economy are also contributing to lower fuel expenditures, as cars and trucks are more efficient and travel farther on a gallon of gasoline. According to the Environmental Protection Agency, the production-weighted fuel economy of cars has increased from 23.1 miles per gallon for 2005 cars to almost 28 mpg for 2014 cars, an increase of over 20%. Similarly, the fuel economy for trucks has increased 19%, from 16.9 mpg to 20.1 mpg in the same timeframe. 

Sources: EIA, Commerce Dept., BLS, EPA

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