Americans to spend an extra $3.5 billion on fuel over Memorial Day Weekend alone
Today the Institute on Taxation and Economic Policy launched a new resource that tracks how much more Americans are spending for gas and diesel fuel due to the Iran War and estimates how much more we will spend as the war continues.
Key takeaways:
- Americans have shelled out an extra $39 billion for motor fuel so far this year because of the Iran War—an amount even larger than the direct cost of the war itself.
- Over the Memorial Day weekend alone, Americans will spend an extra $3.5 billion.
- If prices remain elevated over the summer, the total added expense by the time Labor Day arrives will surpass $116 billion.
- The average added expense per household is $291 so far this year. By the end of the summer, it will be nearly $870 and by year’s end, it could be nearly $1,450.
“Americans were already struggling with the high cost of living before this war started,” said Carl Davis, Research Director at ITEP. “The fact that their summer travel plans just got a whole lot more expensive isn’t going to help with that.”
While President Trump, other federal lawmakers, and some state lawmakers are proposing or implementing gas tax holidays in response to these higher prices, these holidays are ineffective as they offer very little relief to families. Moreover, they also run the risk of straining public budgets at a time when governments at all levels are facing some of the same higher costs as the public brought on by this war.
The data in the resource are broken down by region, by household, and for some states (California, Colorado, Florida, Massachusetts, Minnesota, New York, Ohio, Texas, and Washington). Separate estimates are also provided for impacts on individuals, businesses, state and local governments, and the federal government. The information will be updated daily.
