Rising gas prices hurting lower income, DoorDash helping drivers

Spiking gas prices hitting lower-income households hardest

Spiking gas prices are hitting lower-income households the hardest, forcing them to reduce their gas consumption because they are spending 12% more at the pump. Higher-income households are spending 19% more. 

ATLANTA - Gas prices climbed again overnight as the war in Iran continues and the Strait of Hormuz remains closed.

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What we know:

AAA reported Georgia’s average price for a gallon of regular gas increased 5 cents from Wednesday to $4.09. The national average also rose 2 cents overnight to $4.55 a gallon.

A new report from the Federal Reserve Bank of New York found the rising gas prices are hitting lower-income Americans the hardest.

The report found households earning less than $40,000 a year reduced gas consumption by 7% in the month after the start of the Iran war. Despite that, those households still spent 12% more at the pump because of higher prices.

Meanwhile, households earning more than $125,000 a year increased their gas spending by 19% while only reducing consumption by about 1%. Middle-income households fell in between those two groups.

DoorDash also announced plans to spend more than $50 million on gas price relief for drivers as fuel costs continue to rise. The company said it plans to offset the increase by adjusting investments.