Upstream Pressure

The Pump Tax

Gas costs relative to weekly earnings are retreating from the 2022 peak.

What is the current The Pump Tax?

GAS AFFORDABILITY RATIO
0.8% ↓ Improving
Gas Affordability Ratio at 0.76% — near pre-pandemic levels
One year ago
0.83% ↓ Improving
down 0.0 points since Q1 2025

American households are spending 0.78% of disposable income on gasoline in the latest reading. The Pump Tax tracks gasoline costs as a share of household income — a direct measure of fuel affordability. While the percentage appears small, gas spending is regressive: lower-income households spend 3-4x this share because they drive older, less efficient vehicles and live farther from work. Source: EIA, BEA.

Gas Affordability Ratio at 0.76% — near pre-pandemic levels

Gas costs relative to weekly earnings are retreating from the 2022 peak.

Explore Further

Is this happening to you?

Is filling up the tank taking a bigger bite out of your budget than it used to?

How has The Pump Tax changed over time?

CSV Chart Card
The Pump Tax over time
The Pump Tax, percent
The Pump Tax
Historical data
Quarterly · Computed (EIA/BLS via FRED: GASREGW / LES1252881600Q)
Period Value YoY Change
Q1 2026 0.8% −0.0 pts
Q4 2025 0.8% −0.0 pts
Q3 2025 0.84% −0.1 pts
Q2 2025 0.84% −0.1 pts
Q1 2025 0.83% −0.1 pts
Q4 2024 0.82% −0.1 pts
Q3 2024 0.91% −0.1 pts
Q2 2024 0.97% −0.0 pts
Q1 2024 0.88% −0.0 pts
Q4 2023 0.91% −0.1 pts
Q3 2023 1.02% −0.1 pts
Q2 2023 0.98% −0.3 pts

Frequently Asked Questions

What is The Pump Tax?

The Pump Tax measures gasoline spending as a percentage of household disposable income. At 0.78%, it captures how much fuel costs burden the average American household.

Why does gas affordability matter for distress?

Gasoline is essential for commuting to work. When fuel costs spike, lower-income households — who already spend a disproportionate share on gas — must cut other spending or take on debt.

Where does this data come from?

Computed from EIA gasoline price data and BEA disposable personal income data.

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Why does The Pump Tax matter?

The Pump Tax is one of 91 indicators in the American Distress Index's upstream pressure layer — the signal that predicted the 2008 crisis two years before delinquency data confirmed it.
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