Is That True? Californians Say $6.83 Gas Is Their Breaking Point

As gas prices climb back above $4 a gallon for the first time in years, the impact is reaching far beyond the pump. Rising fuel costs are quietly squeezing household budgets and forcing many Americans to rethink everyday spending.

For a lot of drivers, there’s a clear tipping point – a price where filling up the tank is no longer routine and starts triggering real trade-offs. That can mean cutting back on groceries, skipping outings, or feeling increased financial strain.

To pinpoint that threshold, Advance America surveyed 3,002 drivers nationwide, asking a simple question: at what price per gallon would you start cutting back on essentials?

The results show a country divided not just by location, but by how close people are to financial pressure.

Vermont drivers are the closest to that breaking point, with just a 17-cent gap between current prices and the level where they say they’d begin cutting back. North Dakota and Hawaii follow at 50 cents, with Utah and South Dakota not far behind.

California drivers, while still feeling the pinch, report a bit more breathing room. On average, residents say they wouldn’t start cutting essentials until gas hits $6.83 per gallon – about 95 cents above the $5.88 average recorded on April 24.

At the other end of the spectrum, Alaska drivers appear to have the highest tolerance for rising prices, with a $1.40 cushion before reaching their threshold. Rhode Island, New Mexico, Massachusetts, and Nevada also report wider margins.

When prices do rise, most Californians say they first cut back on discretionary spending. About 41% would scale back dining out or takeout, while 29% would reduce travel and leisure. Still, some cuts hit closer to home – 13% say they would spend less on groceries, and a small but concerning number report they would cut back on healthcare or medications.

To cope, many drivers look for small adjustments. Four in 10 say they would simply drive less, while others would combine trips or plan routes more efficiently. Some say they would pick up extra work to offset costs. More drastic changes – like switching to public transit, carpooling, or changing jobs – are far less common.

For a growing number of people, the strain is already showing. Five percent say they would rely on credit or loans to keep up with rising costs.

Beyond the financial hit, there’s also a clear emotional toll. Nearly half of respondents say they feel extremely or very stressed about gas prices, with another third reporting moderate stress. In total, more than 80% say fuel costs are causing some level of anxiety.

That stress is spilling into daily life. More than a third say they’ve had to rely on borrowing, while 43% report canceling plans with friends or family because of the cost of gas.

“Gas prices don’t just hit wallets — they change behavior,” said Laura McCutcheon, Vice President of Marketing at Advance America. “What’s striking is how little cushion many Americans feel they have left. For some, that tipping point isn’t far off – it’s already here.”