Fueling the shift: How Americans are driving less and spending smarter
Fueling the shift: How Americans are driving less and spending smarter
Fueling the shift: How Americans are driving less and spending smarter

Americans are pumping the brakes on gas spending—driven by economic caution, evolving lifestyles, and emerging technologies.
The numbers from Empower Personal Dashboard™ indicate that fuel spending in the U.S. is falling – and could suggest a structural shift in consumer behavior. The average monthly spend dropped to $177 in early 2025, down 24% from its 2022 peak, and 12% below 2024 levels. In 2020, as COVID lockdowns emptied highways, Americans’ average monthly fuel spend dropped to $134. But as travel resumed and gas prices soared, that number jumped dramatically to $232 by 2022.
A key reason for the decline in fuel spending is the decrease in fuel prices. The gasoline index fell 11.8% from April 2024 to April 2025, and the fuel oil index fell 9.6% over that period.1 As a result, an estimated 39.4 million Americans are expected to travel by car over the Memorial Day weekend, marking an increase of 1.0 million travelers compared to 2024.2
All the spending data and analysis below are sourced from Empower Personal Dashboard™.
Demographic breakdown: Who’s cutting back the most?
By generation:
Millennials went from $202 in January 2024 to just $95 by March 2025, a dramatic drop that may reflect urbanization, ridesharing, and EV usage.
Gen X mirrored this trend, dropping from $198 to $104 in the same timeframe.
Boomers, often seen as less likely to shift behaviors, still halved their spend—from $190 to $95, possibly due to lifestyle downshifting or fixed-income constraints.
Gen Z consistently spends the least, hovering around $90–$100, as they may favor public transit and car-free living.3
By income:
Households earning under $50K reduced their fuel expenses from around $200/month in 2024 to $125–$150 in early 2025, likely out of necessity.4
The biggest drop was among high-income earners: those making over $250K slashed spending from $340+ to the low $170s, likely substituting fuel with electric charging or driving less overall.5
Key trends driving the decline
1. Hybrid work and reduced commuting
Even with widespread return to office mandates, many Americans aren’t commuting like they used to. Hybrid and remote work models have led to fewer weekly miles driven, reducing fuel consumption across most income brackets and age groups.6
2. Budget consciousness is back
With inflation still pressuring essentials like housing and insurance, fuel is one of the first places households trim.7 The median spend fell from $203 in 2024 to $179 in early 2025, showing that this isn’t just a high-income trend—it's widespread.
3. EV adoption and efficiency
Electric vehicles and more fuel-efficient cars are becoming common. Households earning over $250K—early EV adopters8—reduced their fuel spend by nearly 50% from $340+ in 2024 to just $173 in March 2025.
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1 U.S. Bureau of Labor Statistics, "Consumer Price Index Summary," April 2025
2 AAA (American Automobile Association), "45.1 Million Americans Expected to Travel Domestically for Memorial Day," May 2025
3 Yahoo Life, “Gen Z doesn't want cars,” July 2024
4 U.S. Census Bureau, "Household Pulse Survey Data" last accessed on May 21, 2025
5 The University of Chicago Press Journals, "Should Electric Vehicle Drivers Pay a Mileage Tax?" last accessed on May 21, 2025
6 Association of American Universities, "Has Remote Work Changed How People Travel in the US?," May 2024
7 Federal Reserve Bank of Minneapolis, "Lower income, higher inflation?," October 2024
8 Resources for the Future, “A Tale of Two Investments: Charging Stations and Purchase Subsidies for EV Adoption”, last accessed on May 21, 2025
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