The national average for regular gasoline stood at $4.26 a gallon as of early June, a price level sustained by disruptions from the U.S.-Israel military campaign against Iran that have strained energy markets since late April. MSI previously reported that the broader U-6 unemployment rate, which includes discouraged workers and those working part-time for economic reasons, stood at 8.2% in the most recent reading — a measure of persistent slack in the labor market even as consumers face rising costs at the pump.
Automakers are seeing the payoff of earlier bets on hybrid technology. Toyota, which eliminated gas-only versions of its Sienna minivan and Camry sedan years ago, now sells its RAV4 compact SUV exclusively as a hybrid for the 2026 model year. The RAV4 was the bestselling vehicle in the U.S. last year, excluding pickup trucks, giving the hybrid-only strategy broad market reach.
Subaru has added hybrid powertrains to its top-selling Forester SUV and Crosstrek hatchback. At Stanley Subaru in Ellsworth, Maine, dealer principal Mark Politte said the hybrid versions cost a few thousand dollars more than their conventional counterparts but are far outstripping demand for the gas-only models. “The hybrids have been a godsend,” Politte said. They are “hotter than the non-hybrids.” About 30% of Forester buyers this year chose the hybrid, which starts at $36,180 — a $2,985 premium over the $33,195 gas-only equivalent. Subaru said the hybrid battery improves fuel mileage by up to 40%.
Subaru Vice President of Sales Troy Poston said the company decided to widen its hybrid offerings before the latest surge in gas prices, as part of a long-term plan to attract environmentally conscious buyers without requiring them to change their refueling habits. Subaru moved production of the Forester hybrid from Japan to its factory in Indiana, a move Poston said signals expectations that hybrids will be a lasting segment. “We see this as a growing trend — not only this year, but every year moving forward,” Poston said.
The Jeep Cherokee SUV is returning to the U.S. market this year after a hiatus, arriving with its first-ever hybrid powertrain and no gas-only option — a sign of how quickly the segment has gained automaker attention.
Other manufacturers that have been slow to adopt hybrid technology in the U.S. are racing to catch up. Nissan and Volkswagen are rushing hybrid models to their American lineups, according to the Wall Street Journal report.
General Motors, the largest U.S. automaker by volume, remains a laggard. GM’s only hybrid on sale in the country is a six-figure Corvette sports car. Chief Executive Mary Barra has described fully electric vehicles as the company’s “North Star” and said GM is focused on reducing EV costs as adoption grows over time. “We have announced in the past that we will have some hybrids in key segments,” Barra said in January. “So I think we’re going to have the right portfolio.” GM’s smaller gasoline models such as the Chevrolet Trax and Trailblazer, the company said, already satisfy consumer demand for fuel-efficient vehicles.
A Cox Automotive survey conducted in May found that new-car shoppers responding to high gas prices are primarily considering more fuel-efficient gasoline cars or hybrids, rather than electric vehicles. “Shoppers want to save on gas, but the path of least resistance for most is a more efficient version of what they already know,” Cox Automotive said.
That preference is reflected in the used-car market as well: sales of used EVs have seen a sizable boost this year, even as new EV sales remain depressed nearly 12 months after the Trump administration gutted federal fuel-economy regulations and eliminated tax credits that had made plug-in models more competitive on price.