"We find that households had very different experiences with gasoline spending. With the sharp increases in gasoline prices in March, a K-shaped pattern in gasoline consumption emerged-showing faster consumption growth for high income households relative to low-income households."
"The gaps between how each group reacted were larger than in 2022, when a similar gas-price shock occurred after the Russian invasion of Ukraine, the report found."
Lower-income Americans significantly reduced gas consumption following the Iran war, yet rising prices forced them to spend more, exacerbating economic disparities. Higher-income households increased their gas spending while maintaining consumption levels. The differences in responses between income groups were more pronounced than in 2022 after the Russian invasion of Ukraine. The gas-price surge has intensified the K-shaped economy, where wealthier households thrive while poorer ones struggle. Overall gas consumption fell by 3% in March, despite a 25% increase in gas prices during that period.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]