The January 2016 University of Michigan Energy Survey finds a record high in how consumers perceive the affordability of gasoline.
Over the past six months, consumers’ beliefs about the maximum price of gasoline that they feel they can afford has been on the rise. The latest quarter of energy survey data — gathered from polling conducted in January 2016 — reveals a 40 point jump in the gasoline affordability index, from 112 in October to 152 in January. On average across the United States, consumers paid $2.41 per gasoline for gallon. Averaged across all demographic groups, Americans believe that gasoline would become unaffordable if it reached $5.48 per gallon.
A year ago, the January 2015 energy survey pegged the gasoline affordability index at 138, which was a new high at the time and reflected a large gain in consumer comfort about pump prices compared to the previous two years. After dipping again over the remainder of 2015, the January 2016 data sets the new high at 152. Now, consumers believe that gasoline would still be affordable if its price increased by a factor of 2.5, corresponding to the 152% increase represented by the affordability index. (Background on how the the index is calculated from the survey data is given in our Affordability Indices Overview report.)
For home energy, the affordability index of 137 in January 2016 remained similar to that of the previous quarters. On average, survey respondents said that they paid $159 per month for their home energy. They told us that a monthly energy bill of $356 would be unaffordable. In other words, even if its cost were to slightly more than double, most Americans would still find home energy to be affordable in terms of their current lifestyle.
See our latest energy affordability report for more details.