Americans Spent Record Amount On Fuel In 2012

The U.S. Energy Information Administration said that households in the United States spent a record amount on gasoline in 2012. More of their salary went toward motor fuel expenses than at any time since the 1980’s.

The average household expenses on gasoline reached $2,912 last year or just lower than 4% of pre-tax profits, as higher costs at the pump canceled out the effect of more efficient cars.

According to EIA, this was the highest estimated percentage of household income spent on gasoline in nearly three decades, with the exception of 2008, when the average household spent a similar amount. Although overall gasoline consumption has decreased in recent years, a rise in average gasoline prices has led to higher overall household gasoline expenditures.

FuelThe past record amount was under $2,750 in 2008, as crude oil prices spiked toward $150 per barrel in the first half of 2012. Global crude oil costs averaged more than $111 in 2011 and 2012.

The average price of a gallon of gasoline in U.S. cities was $3.70 in 2012. Higher by more than 30% since 2010, the EIA said.

The increase is mainly because of higher global crude oil charges as the world economy has slowly recovered. Gasoline made up 4 to 5 percent of household profits between 1979 and 1983 as the result of Arab oil embargo increased prices.

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