Walmart CFO John David Rainey said during the retailer’s latest quarterly earnings call this week shoppers were filling their gas tanks with fewer than 10 gallons of gas on average for the first time since 2022.

“That’s an indication of stress,” he said during the call. 

While high-income customers are doing fine and spending robustly, he said, the same can’t be said about lower-income consumers.

“The lower-income consumer is more budget conscious and perhaps navigating financial distress,” he added. 

Rainey’s comments come as the national average for gas prices stood at $4.55 Friday, a whopping 42% increase from a year ago. As of this week, the price of gas in all 50 states was above $4, and as high as $6 in California.

The war in Iran has upended global supply chains and nearly ceased oil shipments through the Strait of Hormuz, through which around 20 million barrels flowed daily before the war. In total, Americans have spent $44.8 billion more than they usually would on gas and diesel since the war started in February, translating to about an extra $190 per household, The New York Times reported, citing data from Brown University researchers. 

These rising prices have contributed to increasing inflation, which came in at 3.8% in April, up 0.6% month-over-month, according to the latest Consumer Price Index. Consumer sentiment also fell for the third straight month in May and is now at an all-time-low, according to the University of Michigan’s monthly survey.

The higher inflation fueled by skyrocketing gas prices has the potential to hit customers’ wallets, Rainey added.

“I think it’s possible that if fuel prices persist at this level, you may see some upward pressure on average unit retail prices,” he said.

Walmart isn’t the only company sounding the alarm about consumers changing their buying habits due to economic pressure.

Earlier this year, Costco CFO Gary Millerchip warned the wholesale retailer was seeing inflation in products like beef and candy, as well as a slight pickup in non-food items. While he said this trend was not concerning so far, he noted: “Members are very focused on quality and value.” 

Dollar General’s latest earnings from March also revealed a surge of 122% in the company’s $426 million net income compared to the same period last year. This was partly a result of a value-conscious consumer, CEO Todd Vasos said.

“I think that the consumer really needs a Dollar General at this point as we look ahead with all of what’s ahead of that consumer, including the macroeconomic pressures that are out there and the geopolitical pieces that we’re all watching very closely,” Vasos said on the company’s earnings call.