Read our full analysis for a more in-depth look at these trends.
Do consumers have wiggle room to absorb higher gas prices?
Higher gas prices are stretching lower-income households most, but savings are helping to ease some of the pressure.
April 2026
Key takeaways
- Higher gasoline prices are stretching household budgets, with the greatest impact on lower-income consumers. In March 2026, the median lower-income household spent 4.2% of their income on gasoline, up from 3.9% a year earlier and above 2019 levels, according to Bank of America internal customer deposit data. However, these shares are well below the levels they reached in 2022.
- Some consumers can cushion higher fuel costs through wage growth or increased use of credit, but this flexibility is more limited for lower-income households, which have the most stretched credit card utilization rates relative to 2019. And while buy now, pay later (BNPL) options can provide some support, users tend to have higher card utilization.
- The "good news" is that elevated deposit buffers provide households - even lower-income ones - with a cushion. And tax refund season is so far seeing a similar-sized increase in deposits to last year. Arguably, a significantly bigger risk arises if higher gasoline and oil prices leak into other necessities such as grocery and utility prices - though so far there is little evidence for this.
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