Average U.S. household paying $450 more on gas and energy
Americans spent nearly $450 extra per household on rising energy costs during the Iran war, according to an analysis shared exclusively with CNBC’s Steve Liesman.
The average household has spent $447.19 on additional fuel-related expenses since the conflict began, according to data from Moody’s Analytics. Cumulatively, this has cost American consumers nearly $60 billion due to increased gas prices and airline fees.
Moody’s data captures some of the economic pain felt by Americans in dollar terms as the US-Iran war reaches its third month. Higher energy costs may force consumers to increase their savings and take on more debt to cover expenses.
“Unless the war ends soon, financially stressed consumers will have no choice but to become more cautious with their spending, threatening an already soft economy,” said Mark Zandi, chief economist at Moody’s.
If prices remain at current levels, the average household could take a hit of almost $2,000 in the first year of the war, Zandi said.
About half of the increased energy spending so far is due to higher gasoline prices. The average price for a gallon of unleaded in the U.S. was about $4.39 on Friday; this figure is up more than 47% since the beginning of March. AAA.
More expensive diesel used in vehicles such as delivery trucks and boats has resulted in more than $20 billion in additional costs for consumers. The price of diesel has also increased by nearly 47% since March, to around $5.52 per gallon, according to AAA.
Consumers have given up nearly $10 billion more due to rising jet fuel costs. Federal government inflation data shows airline fares rose more than 20% in April compared to 12 months earlier.
The impact of about $450 more than erased the $384 per household increase from larger tax returns this year under President Donald Trump’s “big, beautiful bill,” according to Moody’s. Zandi said most of the benefits from larger tax cuts have been exhausted.
Goldman Sachs said it expects higher energy prices to “erode” consumers’ spending power through the rest of 2026. The bank said this should especially prevent low-income households from spending a larger percentage of their budget on food and energy.
costco The wholesaler said Thursday it saw “record-breaking” gas volumes at the end of the fiscal quarter as motorists sought lower-priced fuel. McDonald’s CEO Chris Kempczinski warned this month that consumer spending “could get a little bit worse” – especially among lower-income groups – as energy prices squeeze the budget.
Turning to savings, debt
Consumer spending increased 0.5 percent from March to April Government figures released on Thursday. But other data points suggest this isn’t necessarily coming from discretionary funds.
Income growth was flat in April, missing economists’ consensus forecast for a 0.4% increase.
The personal savings rate fell to 2.6% in April, one of the lowest rates since the global financial crisis. This is a far cry from the highs of over 31% seen in 2020; This signals that consumers continue to spend through pandemic stimulus and rainy day stashes amid inflationary pressures.
America’s credit card debt reached $1.25 trillion in the first quarter, up nearly 6% from a year ago, the New York Federal Reserve said this month. This is close to the all-time record set at the end of 2025.
“Consumers face a growing income squeeze, forcing them to use savings, credit and wealth to maintain their spending patterns,” said Gregory Daco, chief economist at EY-Parthenon. “What we’re seeing is actually savings being used to offset weak income growth.”
—CNBC’s Steve Liesman and Betsy Spring contributed to this report.
