(Bloomberg) — Higher prices at the pump are making Avarisse Crawford rethink her spending. The 33-year-old has started scaling back her “fun budget,” meaning fewer steak dinners and happy hours with coworkers — instead she’s seeking out free activities, like going to the park.
“I’m making sure to cut open bottles to finish all of my products,” said the Philadelphia resident. Driving less is not an option for Crawford, who commutes five days a week to the office of the nonprofit where she works. She also makes twice-a-month road trips to visit a sick relative.
Gasoline will be a pain point for travelers this Memorial Day weekend. For many Americans, cutting back has already become the new reality after gas prices topped $4.50 a gallon for the first time in nearly four years.
Get the latest headlines, breaking news and columns.
A welcome email is on its way. If you don't see it, please check your junk folder.
The next issue of Top Stories will soon be in your inbox.
We encountered an issue signing you up. Please try again
As the Iran war drags on, the average nationwide retail price is now less than 50 cents away from an all-time high, according to American Automobile Association data. In California, regular unleaded gasoline has surpassed $6 a gallon. The unofficial start of summer marks the beginning of a period of heightened demand, which risks further depleting US gasoline stockpiles and sending prices even higher.
In an effort to put a ceiling on prices, the Trump administration has pulled on a wide range of policy levers, including releases from the Strategic Petroleum Reserve, a waiver of the Jones Act and discussion of a federal gasoline tax holiday. But so far, it’s been unable to counter the surge.
With many Americans dependent on their cars, gasoline demand is unlikely to meaningfully stall at current prices. That sets up a squeeze on consumer finances that will ripple through the rest of the economy as it eats into spending on nonessentials.
Source: Drudge Report
