Americans are spending 12 percent of their disposable income on energy costs – up from 7.7 percent in 2002, a new study says. Gas prices are the biggest part of the equation.
Haraz N. Ghanbari/AP/file
Congress's failed bid Tuesday to rein in multibillion-dollar tax breaks for oil companies was merely a first shot across the bow, as Americans frustrated by rising energy costs press their lawmakers to target the industry, according to a new study.
The analysis by ClearView Energy Partners estimates that Americans are now spending 12 percent of their disposable income on gasoline, electricity and heating – up from 7.7 percent in 2002. With Americans' disposable income increasing since 2002, households are paying more than double what they did in 2002 – $4,410 a year in 2011, compared with $2,180 a year per in 2002.
Gasoline prices are responsible for much of the jump, with electricity and heating actually down as a share of the household energy budget since 2002. Gasoline, by contrast, now takes up about 38 percent of the average household energy budget, compared with 24 percent in 2002.
The mounting role of oil prices in rising household energy costs means that states with residents that drive more or rely on heating oil are being hit disproportionately hard by the energy crunch. Amid a weak economy with high unemployment rates, that could create new political pressures that could play out in Congress over the next year, says Kevin Book, managing partner at ClearView Energy Partners, a Washington-based energy market research firm.
"You have the same consumers, but they have less cash, less credit, and basically the same gas guzzling cars," he says. "It's a much tougher picture for them overall when you factor in the weak economy."
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