Years of low U.S. consumer energy costs wane following the Russian invasion

• U.S. motorists, already dealing with a steep rise in spending on fuel as the economy rebounded from the coronavirus-induced recession, are now dealing with surging gasoline prices after Russia invaded Ukraine. 
• However, coming into recent months, U.S. consumer spending on energy and gasoline had been near historically low levels - even in the years preceding the coronavirus pandemic. 
• Global energy market prices have skyrocketed since the invasion and subsequent sanctions on Russia from the United States and other countries. U.S. gasoline prices hit an all-time high, while global oil prices surged to a 14-year-high. 
• Americans allocated a record-low share of 1.3% of their total spending on gasoline and energy goods during lockdowns imposed by governments during the coronavirus pandemic in April 2020, according to the Bureau of Economic Analysis. 
• Since then, consumer spending on gasoline and energy has taken up a greater portion of total spending. By December 2021, consumers spent about 2.6% of their total spending on gasoline and energy goods, the most since 2015, according to BEA data. That number dropped to 2.5% in January, the most recent figure available - but is expected to keep rising.

(Source: Reuters)