The US national average gas price has already risen by more than $0.60 from a month ago, and higher prices could be the new normal<\/a>, with crude oil futures (CL=F<\/a>) hovering around $100 a barrel<\/a>. Industry analysts estimate that every $10 increase in crude oil prices translates to a roughly $0.25 increase per gallon at the pump.<\/p>\n The uncertainty weighed on Americans’ views of the overall economy in early March, according to a University of Michigan consumer sentiment reading<\/a> released on Friday, which hit its lowest level so far this year.<\/p>\n “Anytime you have higher gas prices, it’s going to affect both supply and demand because the consumer is going to be pinched in their discretionary spend,” Forrester Research retail analyst Sucharita Kodali told Yahoo Finance<\/a>.<\/p>\n Strategists say that while all consumers are likely to be affected by higher energy prices, lower-income consumers could have more difficulty absorbing higher costs due to affordability issues.<\/p>\n Persistently higher oil prices could start “amplifying K-shaped dynamics in the economy,” or the divide <\/a>between the finances of the lowest and highest earnings households, Evercore ISI vice chairman Krishna Guha wrote in a client note.<\/p>\n Read more: What is a ‘K-shaped’ economy, and what\u2019s causing the divide?<\/a><\/p>\n The oil shock comes as the wage growth gap between low-income and high-income households is at its widest level in 10 years, according to the Bank of America Institute<\/a>. In February, higher-income earners’ wages grew by 4.2% year over year, while low-income earners’ wages rose just 0.6%.<\/p>\n Going into 2026, economists were optimistic that larger tax refunds from President Trump’s One Big Beautiful Bill Act (OBBBA) could boost consumer spending and help close the gap between high- and low-income earners.<\/p>\n That may no longer be the case. Raymond James’ McCourt believes the $25 move in oil prices the past week “essentially offsets the fiscal benefit” from the OBBBA.<\/p>\n Bloomberg economists estimated<\/a> that it would take oil prices hovering around $83 per barrel to wipe out the refunds households receive. As of Friday, prices for Brent crude (BZ=F<\/a>), the international benchmark, traded around $102 a barrel, while West Texas Intermediate crude (CL=F<\/a>), the US benchmark, traded at $97 a barrel.<\/p>\n Diesel prices have been climbing too, ultimately raising the cost to transport just about everything, as trucks carry 70% of US freight<\/a>. <\/a>That could push inflation further from the Federal Reserve’s 2% target and eventually cause the Fed to pivot if the oil shock lasts more than six months.<\/p>\n S&P Global Market Intelligence economics director Michael Zdinak said the lag for higher costs hitting items like food and clothes is typically “at least six to nine months.”<\/p>\n Earlier this week, Dollar General forecast cautious guidance that accounted for the “potential for continued uncertainty, particularly in consumer behavior,” CFO Donny Lau said. Headwinds, he said, include the “changing tariff environment” and “potential for changes in higher gas prices.”<\/p>\n Meanwhile, executives at wholesale retailers BJ’s (BJ<\/a>) and Costco (COST<\/a>) said that higher prices at the pump lead consumers to seek out deals. AutoZone (AZO<\/a>) CEO Philip Daniele noted at a retail conference that consumers may pull back on discretionary purchases, such as new cars, and instead invest in their current vehicles.<\/p>\n \u2014<\/p>\n Brooke DiPalma is a reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma<\/a> or email her at bdipalma@yahoofinance.com<\/a>.<\/p>\n Click here for the latest economic news and indicators to help inform your investing decisions<\/a><\/p>\n Read the latest financial and business news from Yahoo Finance<\/a><\/p>\n ![\"AUSTIN,](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/03\/b9f3b390-1f10-11f1-aaf3-e9757acbe957.jpeg\")
A customer pumps gas at a Chevron gas station on February 13, 2025, in Austin, Texas. (Brandon Bell\/Getty Images) \u00b7 Brandon Bell via Getty Images <\/p>\n