Monthly Gas Expenses of the Average American Driver: Costs and Money-Saving Tips

Budgeting is a must for every American household, and one of the things most people consider when managing their expenses is gasoline for their vehicle.

How Much Does The Average American Spend on Gasoline Per Month?

The average cost of gas per month can range from $130 to $200 for the typical American. That accounts for approximately 16% of the total transportation budget and 2.57% of the monthly income that goes to refueling at the pump.

Of course, the value can still vary, depending on which state you live in, your driving habits, and the type of fuel used for your vehicle. Diesel fuel costs more than premium gasoline. So you might have to shell out a few more bucks than the average American if your daily driver runs on diesel fuel.

Why Is There Increased Spending on Gasoline?

There are a few reasons why most Americans’ average gas cost per month is going up. Firstly, ever since the Russian invasion on Ukraine, gas prices in the US have gone up. Prices reached a high of over $4 per gallon. This is higher than it’s been in years, and some gas stations have been charging as much as $5 per gallon. That being said, gas prices are starting to go down, and experts predict that it might drop to below $3 per gallon in the next few months. This is thanks to favorable weather preventing delays in local refineries.

Still, Russia’s one of the largest oil exporters, and since the war started, it hasn’t been sending much oil to the US. In addition, the US government put a formal ban on Russian energy imports. Gas prices reached those five dollar highs because demand for gas was rising faster than the fuel production companies in the US originally expected. Those companies weren’t able to keep up in early post-pandemic months because of stricter environmental rules and other factors. In 2021, there was also a boom in job gains. Thanks to the increased economic growth, the demand for cars went up as well, and gas prices went up as a result.

US oil companies are catching up to the demand now. Drilling more in the US isn’t lowering the gas prices as much as consumers might hope though, because the prices in local gas stations are still determined by the global prices of oil. The spike in production and oil dependency during and after the pandemic have raised oil prices worldwide, which affect the local prices as well.

Which States Charge More for Gasoline?

According to a report by PersonalCapital, California charges more for gas than the other states, with a gallon of diesel costing a little over seven dollars and premium gasoline at around $6.8.

New York comes in second with $6.3 per gallon of diesel and $5.7 for premium gasoline. The District of Columbia sits in third place with $6.2 per gallon of diesel and six dollars for premium gasoline.

These prices consider fuel taxes (which vary per state), logistics, and other factors that affect the average cost of gas per month in an American household.

Note that the states that charge more for gasoline are not necessarily the areas where most Americans purchase gallons of fuel. For example, consumers might spend more money on gasoline in Alaska than in California because going from point A to point B from that place often takes longer.

Tips to Save Money at the Pump

There’s no denying that gasoline can get pretty expensive, especially with several economic factors coming into play. Follow these tips to help you save money at the pump.

Idle Less

Idling for a long time can drain a quarter-gallon to a half-gallon of fuel. So if you’re stuck in line or waiting for someone, it’s best to shut off the engine to save on fuel.

Don’t Rush

Driving slowly and coasting can help you save up to 40% of fuel.  So the next time you drive, you might want to think twice about accelerating too fast and braking hard.

Travel Light

You’re bound to use up more fuel the heavier your vehicle is. So consider clearing out your trunk the next time you go out for a drive.

Check Your Tires

Underinflated tires can lead to reduced gas mileage. According to a report by the Department of Transportation, 0.2% of fuel economy is lost for every one PSI your tires are underinflated.

Drive Without A/C

Using your vehicle’s A/C unit can decrease its fuel economy by 25% or more. The A/C demands more power from your vehicle’s engine, which causes the engine to use up more gas. If you’re content to drive without A/C and are looking to save on gas, turning the A/C off is the way to go.

Don’t Skip Scheduled Oil Changes

If your vehicle’s oil is old and broken down, the vehicle’s engine will need to work much harder to keep running. It won’t be running at peak efficiency, meaning it will tend to burn more gasoline as it runs. Keep to your vehicle’s scheduled oil changes to keep it running optimally.

Find the Best Prices Using an App

There are several gas apps you could use to compare prices before topping up on fuel. These apps are often integrated into navigation apps to help you find the nearest gas station in your area.