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Americans Cut Back on Essentials as Gas Prices Surge 34%

U.S. gas prices rose 34% in March to $3.96 per gallon due to the Middle East conflict, prompting Americans to cut back on essentials like food and transportation. Households across income levels are reducing spending, with delivery drivers experiencing lower earnings despite higher fuel costs. Families are forgoing activities, and even electric vehicle owners face unexpected expenses when their cars are unavailable. Experts forecast a modest decrease in gas prices but warn of broader inflationary effects on goods. The situation exacerbates financial strain amid existing high living costs.

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Americans Cut Back on Essentials as Gas Prices Surge 34%

As U.S. gas prices surged 34% in March to an average of $3.96 per gallon, Americans from all economic backgrounds are reducing spending on necessities and discretionary items to cope with higher fuel costs.

Households Tighten Belts

  • Sarah Lawhun, an environmental scientist, skips lunch to save $30 weekly but feels tired and hungry.
  • She cuts back on fresh vegetables and meats, shops more at discount grocers, and struggles with medical debt.
  • Middle-class individuals also report tightening budgets after years of high costs for food, housing, and utilities.

Delivery Drivers Face Double Blow

  • Mark Hernandez, a Walmart delivery driver, sees gas prices rise from $2.45 to $3.83 per gallon in weeks.
  • Simultaneously, his orders and tips have dropped, slashing weekly earnings by hundreds of dollars.
  • He is applying for other jobs, like lifeguard, and seeking work-from-home positions.
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Families Sacrifice Activities

  • Dexia Billingslea stops all non-essential driving, costing $15 more weekly for gas.
  • She can no longer take her son to the park or her daughter to church groups, disappointing her children.
  • Her son with autism has acted out more due to the disruption.

Electric Vehicle Owners Not Spared

  • Mike Schentag's Rivian SUV was in repair, forcing him to rent a gas-powered car.
  • He spent over $100 on gas in one week, compared to $46 monthly for charging his EV.
  • He worked from home and used his wife's EV to minimize rental use.

Expert Analysis and Economic Ripple Effects

  • Patrick De Haan of GasBuddy predicts gas prices may ease by 1-3 cents daily post-conflict.
  • Higher fuel costs will likely increase prices for transported goods like food.
  • The conflict began when Iran closed the Strait of Hormuz, disrupting 20% of global oil supply.
  • Prices fell slightly after President Trump announced a delay in strikes on Iran's energy infrastructure.
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