Analysts say Americans are now spending 7% of their income on gas, a statistic that is up 1.5% from last year.
If you make $45,000 per year, you’re shelling out over $3,000 just to put gas in your vehicle.
The 7% figure may be interesting in itself but this is a statistic that begs for more background information. Is 7% a lot or a little? Should people be alarmed?
The story already includes two pieces of context:
- This is an increase from last year. Generally, people do not want to be paying significantly higher prices year after year. While 1.5% is a low number, drivers would probably not want this number to keep going up.
- A slightly lower than average income person or family – the median household income is a bit higher than this – spends over $3,000 on gas. People could read this figure and then think where else that $3,000 could be used.
But, there is more information that could be useful here.
- Historically, how much do Americans spend on gasoline? The article includes a one-year trend but how does this look over decades? Are gas prices going up the same way medical costs are going up?
- How does this 7% compare to other essential categories of spending such as food (and the groceries vs. eating out breakdown could be interesting) or housing?
- What are the total costs of car ownership? Gasoline adds up but vehicle owners also have to factor in maintenance and insurance.
- These are average figures for gasoline consumption: how much different will gas costs be for SUV and truck owners (and these are driving the car market) versus small car owners?
- How does this compare to gasoline costs in other countries? The rise to 7% may seem like a lot but gasoline costs more in some other industrialized countries and people in other countries drive less than Americans.
While this may be too much to ask for a short news story, gas costs, as well as most other social and economic statistics, are complicated. The numbers do not necessarily interpret themselves. Something going up or down or staying the same is as meaningful as its context and what we make of it.