A report shows lower-income households are spending more at the pump despite cutting down gas consumption

US gasoline prices have surged to an average of $4.54 per gallon as of Wednesday, according to AAA data, marking the highest level since July 2022.

A report from the Federal Reserve Bank of New York shows that these sky-high prices are widening the economic divide.

Lower-income households have sharply reduced gas consumption amid rising prices, but are still forced to spend more at the pump.

Meanwhile, higher-income households maintained their consumption levels despite the spike.

Since the onset of the Iran war in late February, regular gas prices have jumped 52%.

The crisis is also being felt globally. The Association of Southeast Asian Nations (ASEAN) leaders began their three-day summit in the Philippines yesterday to address the soaring fuel costs and a heavy reliance on Middle Eastern energy.