Gas prices have risen sharply. Unlike luxuries, which can be cut out of family’s budgets, gas is an essential for most Americans. In much of the United States, public transportation is lacking and in some towns it doesn’t exist at all. Many people need to fill up their tanks to commute to work. It doesn’t help that grocery costs are also up.
According to a 2026 YouGov report on U.S. debt, investment, and savings, about 22% of Americans believe they are falling behind financially and another 33% think they are “just about keeping up.” Most of the people who are “keeping up” are doing so by cutting non-essential spending (55%) or even essential spending (30%).
Budgets can only be stretched so thin before they completely fall apart. Let’s discuss the current state of gas prices and the likelihood of Americans being able to comfortably handle them. I’ll also provide some tips for how to spend less at the pump and manage the price.
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How Much Have Gas Prices Increased?
Gas prices can vary substantially by state, so it can be simpler to look at the national averages. These are the current national averages by fuel type:
- Regular: $4.391
- Mid-Grade: $4.898
- Premium: $5.271
- Diesel: $5.522
- E85: $3.488
To understand how much prices have risen, let’s take a look at what the averages were a year ago, which were as follows:
- Regular: $3.174
- Mid-Grade: $3.643
- Premium: $4.003
- Diesel: $3.523
- E85: $2.573
* Prices are as of May 29, 2026.
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Do Consumers Have Space in Their Budgets for Increased Gas Costs?
It’s common for cost increases to affect lower-income households the most and gasoline prices are no exception. Per Bank of America data, as of March 2026, the median lower-income household spent 4.2% of its income on gasoline. Comparatively, it was 3.9% the prior year.
Translation: About 10% of lower-income households spent more than 10% of their income on gasoline!
While high-income households may have the ability to absorb high gas costs, it’s a trickier feat for low-income families. To manage high fuel costs, lower-income consumers sometimes increase their credit card utilization or use buy now, pay later (BNPL) loans—both of which pose significant credit and fee risk.
Related: 10 Useful iPhone Tips for Seniors
How Can Consumers Better Manage High Gas Prices?
While you can’t control gas prices, you do have some power in how much you spend on gas. Among other things, you can …
- Save money on gasoline by using apps that compare prices for you or, like Upside, offer cash back on fuel (and other) purchases.
- Performing routine car maintenance tasks.
- Removing unnecessary weight from your vehicle.
For more strategies, you can check out our article specifically about ways to lower your gas costs.
Unfortunately, even if you get the lowest possible price, gasoline might still exhaust your budget. You might need to carefully evaluate your spending to find expenses to cut from your budget. And if your financial situation is looking particularly bleak, you might need to create a bare-bones budget to temporarily follow.
The average consumer isn’t privy to what gas costs will look like in the future, so it’s wise to err on the side of caution and assume high future prices as well.
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