Rising Gasoline Prices Fueling Investor Concerns

6/1/2022

It is impossible to not be aware of the significant increases in fuel prices in the United States. Some areas of the country have been more impacted than others regarding the rising cost of fuel, but the increase is felt everywhere. According to AAA the cost for gasoline has increased 40 percent in 2022, making it an issue that wealthy investors must address in their lives. Investors also feel that certain things should happen to mitigate the rising cost of fuel.

Despite the significant increase in cost, 48 percent of investors have not had any changes in their consumption of fuel, according to recent research from Spectrem Group. This could likely be due to the fact that many investors do not have the flexibility to make changes in their driving habits. A third of investors have cut down on their errands and trips, while 20 percent are shopping the cost of gas to find the lowest prices. Millennials and Gen X are the most likely to have been making changes to their gas consumption, while nearly two-thirds of WWII investors have not made any changes as a result of the rising cost of fuel.

Investors do not agree on what would be the best course of action for the United States to take to mitigate the rising costs of fuel. Over half of investors feel the best action that could be taken would be to open the pipelines. Understandably, due to the politically charged nature of this option the desire to open pipelines varies most significantly by political party. Nearly three quarters of Republicans feel that opening our pipelines would be the best method of addressing rising fuel costs, while 36 percent of Democrats feel that way. Over half of Independent investors feel that opening the pipelines would be the best course of action. Democrats are more likely to be in favor of releasing our oil reserves as a method to combat rising fuel costs, and 40 percent of investors agree with that approach. Over a quarter of investors feel that the United States to offer financial incentives to individuals and companies that would encourage fuel conservation.

Inflation and rising fuel costs do not appear to be going away any time soon. In fact, wealthy investors may see another jump in gas prices due to summer driving. Investors should review their monthly budgets to determine if any adjustment needs to be made for the rising costs of fuel. It will be interesting to see if these increased fuel costs will result in fewer road trips being taken for the remainder of 2022.