Consumers Expecting Higher Gas Prices

Despite these expectations, 44% of consumers are spending the extra money from this year’s lower fuel prices.

​ALEXANDRIA, Va.June 10, 2015; NACSonline reported that a majority of consumers expect that gas prices will continue to rise during June, a period in which gas prices typically tend to moderate – or even fall – after the completion of the annual spring transition to summer-blend fuel. Nearly three in five consumers (59%) expect that gas prices will go up over the next 30 days, versus just 9% who expect them to fall, according to results of NACS’ June consumer sentiment survey.

On average, consumers reported that gas prices rose 16 cents last month to reach $2.75 per gallon. Despite these rising gas prices, consumer optimism about the overall economy is continuing to grow. A slight majority (52%) of consumers say they feel “very” or “somewhat optimistic” about the economy, up four percentage points from the 48% who said so in May. Consumers ages 18-34 are feeling particularly hopeful, with nearly three in five (57%) saying they feel optimistic about the economy, including 20% who say they are “very optimistic.”

Nationally, gas prices remain almost a dollar per gallon cheaper than they were at this time last year, leaving many consumers with extra money in their pockets. The U.S. Energy Information Administration estimates that lower gas prices will save the average American family $675 in fuel costs over 2015.

Less than half (44%) of Americans say they are spending this extra money, with 38% spending it on day-to-day essentials and 6% spending it on special items they wouldn’t buy otherwise. Households making less than $35,000 per year are most likely to be spending the money on day-to-day essentials (47%, versus just 28% of those making more than $75,000 per year).

Overall, one in three Americans (33%) are saving the extra money in their pocket from lower gas prices. Higher-earning consumers in households making over $75,000 per year are more likely to be saving the money (39%, versus 27% of lower-earning consumers). Those lower-earning savers are much more likely to putting these savings toward an emergency fund (64%, versus just 31% of higher-earning savers). Meanwhile, higher-earning savers are much more likely to be saving the money toward retirement (36%, versus just 8% of lower-earning savers).

One in five American consumers (21%) are using the extra money to pay down debt. Among those, 71% are using it to pay down existing credit card debt.