Commuting costs rise as U.S. gas hits $4.54, shifting budgets

Commuting costs rise as U.S. gas hits $4.54, shifting budgets

Commuting is getting more expensive for many Americans as the average price for regular gasoline reached $4.54 a gallon on Friday, according to AAA. A poll released last week found people are already cutting driving, changing trips, and trimming other household spending to keep fueling their vehicles.

More than half of American drivers said in a March AAA survey that they have to change behavior if gas prices exceed $4 a gallon. Americans drive more than 13,000 miles a year on average, and a vast majority rely on a vehicle to get to work and handle other daily tasks.

AAA and April polling

The Friday price was well above the roughly $3 average seen before the war in Iran. In the end-of-April poll from Ipsos, the Washington Post, and ABC News, more than 2,500 American adults answered questions about how higher gas prices were affecting them.

That survey found 44% had cut back on driving, 34% had tweaked travel or vacation plans, and 42% had cut other household expenses to afford gas. Another April poll from AmericanMuscle found 12% of Americans were working remotely more often to save on gas costs.

Lower-income households

Research published this week by the New York Federal Reserve found that rising gasoline prices hit Americans with lower disposable incomes harder because transportation takes a larger share of their budgets and they have fewer alternatives when fuel costs rise. The researchers said wealthier drivers were also spending more, but not enough to change behavior.

March data from Veo showed the same pattern in a different form: 68% of its riders chose an electric scooter or bike trip instead of driving themselves because of gas prices. For workers facing a long commute, the practical response has been immediate — fewer discretionary trips, tighter household budgets, and in some cases a search for work closer to home.

Gas prices and daily choices

The pressure now falls on the decisions people make before they leave home. Drivers are already cutting back at the pump and in other parts of the budget, and the $4.54 average leaves little room for people who depend on a car every day to keep treating fuel as a fixed cost.

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