Gas prices surged past $4, and Americans are driving less, canceling vacations, and budgeting more

The conflict in the Middle East itself might be teetering on a tentative ceasefire, but higher gasoline prices are likely here to stay. The average price for a gallon of regular gasoline on Friday was $4.54, according to AAA, up from around $3 before the war, and the most expensive gas has been since the Ukraine War’s early days in mid-2022. 

Americans are responding to higher gasoline prices the only way they realistically can: by changing behavior and trimming budgets. In some cases, they are quietly giving up on the idea that this summer will look anything like the last one, according to a poll released last week by Ipsos, the Washington Post, and ABC News.

The poll surveyed more than 2,500 American adults at the end of April, asking how many had taken specific actions due to higher gasoline prices. It found 44% of adults say they have cut back on driving, 34% have tweaked their travel or vacation plans, and 42% have cut other household expenses in order to afford their gas.

While the rise in U.S. gasoline prices might still pale in comparison to the marginal increases drivers in Europe and Asia are paying for, expensive gas in the U.S. hits particularly hard. Americans, on average, drive more than 13,000 miles a year, and a vast majority rely on their vehicle to get to work, as well as accomplish many other chores. With fewer public transportation alternatives than in other developed nations, many Americans are stuck with either paying more at the pump or figuring out ways to drive less. 

Getting creative with transport

Some drivers are trying to combine multiple chores into one trip, or cut back on driving that isn’t work-related altogether. One April poll from car shopping platform AmericanMuscle found 12% of Americans are working remotely more often to save on gas costs, with a small number also saying they are looking for a new job closer to where they live. Some frugal operators are even trying to game their local fill-up station’s rewards program in their bid to save. 

Where available, people are taking to public transportation, with commuter lines like Amtrak and Florida’s Brightline recently reporting rising ridership compared to a year ago. And if trains and buses aren’t an option, fear not. Veo, an e-bike provider, reported in March 68% of its riders had opted for an electric scooter or bike trip instead of driving themselves due to gas prices.

Gas prices deal a psychological toll. Not only is gas one of the most commonplace expenses most Americans have, but consumers are constantly reminded of how far we’ve come every time they pass in front of a gas station and its brightly lit neon sign advertising the latest fees. More than half of American drivers say they have to change their behavior if gas prices exceed $4 a gallon, according to a March AAA survey, a share that rises the more expensive gas gets.  

The burden is especially sharp for lower-income households.  Rising gasoline prices are hitting Americans with lower disposable incomes because transportation takes up a larger share of their budgets, and because they have fewer alternatives when fuel costs rise, according to research published this week by the New York Federal Reserve. Wealthier drivers are also spending more, but the costs aren’t high enough to spark changes in behavior, the researchers found, while lower-income consumers are forced to cut back on their usage or find other places to budget. 

A clear signal

Around the world, pressure at the pump is forcing more consumers and governments to consider all proposals. In the U.K., a think tank advised a series of measures this week, including one to lower speed limits, which has been shown to decrease fuel usage. Pretty much everywhere, although particularly in southeast Asia, drivers are rushing to ditch their gasoline-powered vehicles for electric cars.

Americans are yet to be fully sold on electrifying their personal transport, however. The recent Ipsos poll found only 15% of U.S. drivers say they are considering purchasing an EV due to gas prices.

That might also change if prices stay elevated for much longer, something most consumers and analysts both predict. The recent polling found 50% of Americans expect gasoline costs to get worse over the next year, while projections from the Department of Energy also don’t have prices normalizing until 2027. 

The frustration is not only economic, but political. Several polls have shown a majority of voters blaming President Donald Trump for the rise in gas prices, underscoring how quickly fuel costs become a proxy for broader anger about the direction of the economy. On Friday, a widely cited survey from the University of Michigan found consumer sentiment now languishes at a record low, largely due to concerns over gas prices.

Gasoline has long had a special place in the American psyche because it is visible, frequent, and hard to avoid. In a country built around the car, it can be one of the loudest signals of a discontented consumer.