Higher gas prices are forcing some Americans to spend less on food

Gas prices are now changing dinner plans

Higher gas prices are no longer just an annoyance at the pump. For some Americans, the extra cost is now big enough to change what they eat, where they drive, and how much room they have left in the budget for anything else.

AAA said the national average for regular gas hit $3.983 on March 25, 2026, up from $2.975 a month earlier. That kind of jump lands hard on households already feeling squeezed by food, rent, utilities, and debt.

One commuter is skipping lunch

Sarah Lawhun, a 31-year-old environmental scientist in a suburb of Albany, New York, told CNN she has spent nearly $70 more on gas this month. To make up for it, she has started skipping lunch at work, saving about $30 a week but leaving herself tired and hungry.

Her 50-mile round-trip commute shows how quickly a fuel spike can hit workers who cannot easily stop driving. She is also cutting back on fresh vegetables and meat and shopping more at discount grocers to protect savings and pay down medical debt.

This is hitting more than low-income homes

The strain is not limited to households already living on the edge. Analysts and surveys have warned that rising fuel costs and market volatility can pressure both lower- and higher-income consumers, raising the risk of a broader pullback in spending.

A Reuters/Ipsos poll found that 55% of Americans said recent gas-price increases affected their household finances at least somewhat. Within that total, 21% said the impact was “a great deal,” signaling serious stress for a sizable share of households.

The rise has been unusually fast

This story feels different because the price increase happened over a short window. Reuters reported pump prices jumped more than 30% this month, with analysts warning the national average was moving toward $4 a gallon.

AAA’s numbers show the same kind of acceleration. The national average reached $3.983 on March 25, 2026, up from $2.975 a month earlier—an unusually sharp rise that can throw off even careful budgets.

Why food costs are part of the story

Gas prices matter to more than drivers because energy costs are built into how food gets produced, transported, and sold. Fuel affects everything from farm operations to refrigerated trucking and grocery deliveries.

Diesel is especially important because it powers much of the freight and delivery network. When diesel prices climb sharply, transportation costs often rise too, and research shows those higher costs can contribute to higher food prices over time.

That is why people like Lawhun worry about groceries, not just commuting. When moving goods gets more expensive, households can feel the squeeze at the pump and later at the checkout line.

Delivery drivers are getting squeezed twice

For gig workers and contractors, higher gas prices do not just raise living costs. They also eat directly into take-home pay, especially when tips and order volume weaken at the same time.

Mark Hernandez, a Walmart delivery contractor in El Paso, said gas at his Sam’s Club rose from $2.45 a gallon on February 24 to $3.83 on March 20.

He also told CNN his orders and tips fell, cutting weekly earnings by several hundred dollars and pushing him to search for other work.

Families are cutting back on small outings

Rising gas prices are also reshaping family routines in ways that look small on paper but feel big at home. CNN reported that Dexia Billingslea of Jacksonville, Florida, now spends at least $15 more a week filling her tank and has stopped all non-essential driving.

That means no park trips for her 3-year-old son, no church group rides for her 12-year-old daughter, and no short spring-break road trip. When fuel gets expensive enough, it can shrink family life to school, work, and back home.

Even planned travel is getting tighter

Some trips cannot be canceled, but they can become more stressful and more expensive. Patric DeStevens and his wife told CNN they are driving 2,800 miles back to Vancouver, Washington, after caring for his terminally ill mother in Pennsylvania, and they expect gas alone to cost about $100 more.

Because of that, they are putting stricter limits on food and lodging during the drive. Back home, DeStevens said his local Costco gas price had climbed to $4.79 a gallon, more than a dollar above what he saw in late February.

Diesel may be the next grocery warning

Regular gas gets the headlines, but diesel can matter even more for what Americans pay next because it powers much of the freight economy.

In its March 24, 2026, release, EIA put the U.S. average on-highway diesel price at $5.375 per gallon for the week ending March 23. Around the same time, AAA reported the national average for regular gasoline was about $3.98.

Reuters reported that U.S. average diesel prices had crossed $5 per gallon for only the second time in history, underscoring how strained freight and industrial fuel markets had become.

Because diesel is widely used in freight and delivery trucks and many farm vehicles, sustained spikes can raise transportation and production costs, which can filter into food prices over time.

Fertilizer is another problem building

Food inflation risk is rising from another direction as well. Reuters reported that the Iran conflict has disrupted fertilizer shipments and pushed some fertilizer prices up 30% to 40%, raising the risk of a fresh food-price shock.

That matters because fertilizer costs affect planting decisions and crop economics before products ever reach a grocery shelf. If those costs stay high through the growing season, food budgets may face another round of pressure even after gas prices cool somewhat.

Americans expect more pain ahead

This is not just a momentary sticker shock story. The Reuters/Ipsos poll found 87% of Americans believed gas prices were likely to rise further over the coming month, showing how widespread the anxiety has become.

That expectation can change behavior before prices climb any further. People delay trips, trim errands, skip meals out, and spend more cautiously when they think the next fill-up will cost even more than the last one.

Even EV drivers can get caught in it

Owning an electric vehicle does not fully shield a household from a fuel spike. Mike Schentag of Boulder, Colorado, told CNN he and his wife usually drive EVs, but when his 2025 Rivian went into the shop, he got a gas-powered rental at the worst possible time.

He spent $52 on gas one week and another $53 before returning the rental car. He said that was more than the $46 monthly cost to charge his Rivian at home, a sharp reminder of how quickly fuel costs can pile up.

Could the Iran conflict keep gas prices higher for longer than Americans expect? Check out Trump acknowledges that the Iran conflict could keep gas prices elevated.

The economic ripple could spread wider

When households divert more money to gas, something else usually gets cut. Reuters reported that analysts worry the pressure could weaken spending across the economy, affecting everything from discretionary shopping to travel and services.

That is why this story matters beyond energy markets. A sharp rise in fuel costs can slowly translate into weaker consumer demand, tighter household budgets, and greater caution in parts of the economy that depend on everyday spending.

Want simple ways to cut fuel costs as prices climb? Check out how to save fuel as gas prices rise, according to experts.

Have higher gas prices changed how your household budgets for food, driving, or family plans? Share your thoughts and your view in the comments.

This slideshow was made with AI assistance and human editing.

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