You don’t have to drive too far down memory lane to remember when gasoline prices hit their highest point ever. It happened in June 2022, when the national average for regular gas reached $5.016 a gallon, according to AAA.
Today, that average has fallen to about $2.834 a gallon. For gas prices to reach $10 a gallon, they’d have to roughly double the all-time high. Nobody is predicting that to happen anytime soon.
But what if gas prices did hit $10 a gallon? GOBankingRates asked ChatGPT that question, and one thing it said is that such a price would represent a “hypothetical extreme.” Getting there would require a combination of surging global oil prices and supply disruptions that dwarf any that came before.
Here’s a deeper dive into what would happen if gas prices rose to $10 a gallon, according to ChatGPT.
Also see the five gas-guzzlers most impacted by 2025 fuel price increases.
Ripple Effects
If gas reached $10 a gallon, it would likely “transform many aspects of daily life, from commuting and shopping to housing and spending,” ChatGPT said. “It wouldn’t just be about paying more at the pump — the ripple effects across the economy, society and individual lifestyles would be substantial.”
That conclusion aligns with what other experts say. According to a 2024 article from Fuel Logic, soaring gas prices would have a direct negative effect on a variety of fuel-intensive industries, including the following:
- Freight and logistics
- Delivery services
- Construction
- Agriculture
- Food processing and distribution.
Beyond that, high gas prices have a “huge impact” on the U.S. economy by slowing GDP growth, contributing to higher unemployment, shaking consumer confidence, and forcing the government to change its monetary and fiscal policies.
Following are some different ways life could change in the United States if gas were to hit $10 a gallon, according to ChatGPT.
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Economy and Business
According to ChatGPT, the economy would see a GDP decline of about 2% to 5% in the first year. That’s roughly the equivalent of a “mild-to-moderate” recession, similar to the one that occurred during the 1979-1980 oil crisis.
Additionally, a slowdown in consumer spending would lead to shrinking sales in retail, restaurants and services. And some businesses might relocate or close, especially in sectors with high transportation costs.
There would also likely be a shift in real estate and housing dynamics as more people move closer to work. This might cause suburban housing prices to fall in some markets.
Consumer Transportation and Mobility
Many people would likely reduce or eliminate nonessential driving, as fuel would go from a “medium-sized” budget item to one of the largest monthly bills. There probably would be less commuting and more teleworking, which could ease rush-hour congestion in some cities.
Plus, more consumers likely would shift to smaller fuel-efficient cars, electric vehicles, bikes and scooters.
Costs of Goods and Services
Gas that costs $10 a gallon would lead to a spike in the prices of everything from food and plastics to packaging and household staples. At $10 a gallon, the average family’s gas bill might leap from about 16% of overall retail spending to 40%, per ChatGPT.
Discretionary spending on items such as electronics, dining out and vacations could also fall as households put a greater emphasis on essentials.
Infrastructure and Government Finance
A decline in fuel tax revenue would likely cause delays in road and highway projects, while rising costs of asphalt and other materials would make roads more expensive to maintain.
Additionally, ChatGPT noted that public transit infrastructure could get over‐stretched or require additional investment as more people shift away from cars.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT What Would Happen If Gas Prices Hit $10 a Gallon
