Gasoline Spending to hit 11-Year Low in 2015

Gasoline Spending to hit 11-Year Low in 2015

The average U.S. household is expected to spend less than $2,000 on gas next year.

As fuel prices continue to drop around the country, the U.S. Energy Information Administration (EIA) has released a report showing that the average U.S. household will spend about $550 less on gasoline next year compared to 2014. Annual motor fuel expenditures are expected to drop to their lowest level in 11 years and it will be the first time since 2009 that average annual spending will be below $2,000.

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EIA forecasts that the average household gasoline costs will be $1,962 next year after prices for U.S. gasoline has dropped for 11 weeks in a row to an average of $2.55 per gallon as of December 15. Increases in average fuel economy of vehicles being sold is also contributing to lower expected fuel expenditures. The Environmental Protection Agency (EPA) has said that the production-weighted fuel economy of cars has increased from 23.1 mpg for model year 2005 cars to almost 28 mpg for model year 2014. In addition, fuel economy for trucks has also increased 19 percent, from 16.9 mpg to 20.1 mpg.