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.