On average, energy costs have nearly doubled as a fraction of annual family budgets since 2001. The unequal distribution of incomes in the United States imposes disproportionate energy cost burdens on minority and senior households. The average after-tax incomes of low- and middle-income U.S. families have not grown since 2001. Meanwhile, inflation has eroded 27% of the value of American families’ incomes.
The prices of petroleum-based fuels, particularly gasoline and home heating oil, have increased significantly in the past decade. The rapid escalation of consumer energy prices, along with stagnant income growth, magnifies the impact of energy costs on all American families.
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Acknowledgment – This report was prepared for ACCCE by Eugene M. Trisko, who has conducted these analyses annually since 2000. Mr. Trisko is an attorney and energy economist who represents labor and industry clients. He previously served as at an attorney in the Bureau of Consumer Protection of the U.S. Federal Trade Commission and as an expert witness on utility cost of capital.
