Rising gas prices put more financial pressure on Latino households, study says

As the price of regular gas soars to $6 a gallon across California, Latino families are feeling the financial burden more than other households in the state, researchers at UCLA said Thursday.

According to a study by the UCLA Latino Policy & Politics Institute, the spiking gas prices are disproportionately affecting the financial health of Latino households largely because they tend to have fewer financial resources and depend on cars for their livelihoods.

Based on a number of data sources, including the 2023 Consumer Expenditure Survey and 2017 National Household Travel Survey, the researchers calculated the average amount of Latino families’ year budget compared to non-Latino households. They also measured households’ dependency on vehicles and the distance.

When Latino households spend more on gas, it’ll eat up more of their budgets, even when they don’t have other means to make up for the difference.

“Latino households spend $1,300 more per year on gasoline than non-Latino households,” the study said. “These higher housing costs leave Latino households with less room in their budget to absorb rising gasoline costs.”

The reason for higher gas expenditure is Latino families tend to commute more than other ethnic groups. They are also less likely to work from home, the researchers said.

“Even before the gas prices increased Latinos households were already spending more money on gas than non-Latinos and always experiencing higher costs of house burden,” Rosario Majano with the UCLA Latino Policy & Politics Institute told NBCLA.

Also because Latino households are less likely to have newer, more fuel-efficient cars, they are spending more on fuel without alternative options, the study found.

Abel Martinez, who is juggling multiple jobs while scaling back on going out, said he understands why Latinos are spending more on gas.

“If you think about it many electric cars are on the pricier side,” Majano said. “Many Latinos are on the lower income so many don’t have the opportunity to buy things like that. “

Researchers said they hope the data can be a tool for policy makers to find ways to support all communities, especially Latinos who are struggling financially but contribute to the state.

As of Thursday, the average price of a gallon of regular gas in Los Angeles County rose was $5.95 per gallon, $5.08 in Orange County.