Gas Station Sales Surge 15.5% as Retail Spending Jumps

Gas Station Sales Surge 15.5% as Retail Spending Jumps

U.S. retail sales recorded their largest increase in three years in March, driven largely by a sharp rise in gas prices, according to the Commerce Department’s latest monthly report released Tuesday.

Total retail and food service sales reached $752.1 billion in March, marking a 1.7% increase from February and a 4% gain compared with the same period last year. For the first quarter, overall sales rose 3.7% compared with the first three months of 2025.

Much of March’s growth was fueled by higher fuel costs, which surged בעקבות geopolitical tensions, including the ongoing conflict involving Iran. Gas station sales climbed 15.5% month over month and were up 18.1% from a year earlier—far outpacing gains in any other sector. Excluding gas stations, retail sales rose a more modest 0.6% from February.

“It’s a blowout retail sales figure for March,” said Heather Long, chief economist at Navy Federal Credit Union. “Even after stripping out the spike in gas spending tied to the Middle East conflict, a 0.6% increase still reflects solid consumer activity. Most categories saw gains, although restaurant spending was relatively flat, which may signal early signs of pullback as consumers allocate more of their budgets to fuel.”

Other areas of growth included housing-related sectors. Sales of furniture and home furnishings rose 2.2% from the previous month, while building materials and garden supplies increased 0.7%. However, furniture sales declined compared with a year earlier, while the broader building sector posted a 2.6% annual gain.