Chamber Chat: How are High Gas Prices Affecting Delmarva?

SALISBURY, Md. – In this week’s Chamber Chat, WMDT’s John Trout and Salisbury Area Chamber of Commerce President Bill Chambers discussed how higher gas prices are impacting Delmarva, where so many residents rely on their cars.

A new study out of the National Bureau of Economic Research found that for every 10 percent increase in gas prices, consumers spend about five percent less at restaurants, while grocery spending increases about two percent. 

“We’re definitely seeing consumers become more intentional about where their dollars go. When more of the household budget goes into the gas tank, people have to find ways to make up that difference,” Bill said. “And that often means cutting back on discretionary spending — dining out, entertainment, and other purchases they can postpone.”

Bill told WMDT that these small decreases in discretionary spending can have larger impacts on local restaurants and retailers. As for the gas stations themselves, consumers typically make more trips to the station when prices are higher, opting to purchase smaller amounts of fuel per visit rather than filling up their tank. 

“Consumer behavior is becoming more fragmented, more dynamic, and more competitive,” Bill concluded. “Local businesses have to understand what customers value and give them a reason to spend locally.”

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