The graph below shows the average annual nominal and real prices of retail regular-grade gasoline from 1976 through 2025. The real prices are based on the value of the U.S. dollar in May 2024. Energy Information Administration’s (EIA) forecast for average annual prices for 2024 and 2025 in the May 2024 Short-Term Energy Outlook. The average price for Gas is calculated from a weighted average of retailer data collected by the Bureau of Labor Statistics. Inflation rate is also calculated by the Bureau of Labor Statistics. The table below shows average prices and their corresponding “real” prices adjusted for inflation rate.
No matter which state you live in, you no doubt have felt the sting. The previous high was $4.11 on July 17, 2008, according to AAA. That would come to around $5.25 today when adjusted for inflation. With overall inflation now reaching a three-decade high, Americans are worried. Despite positive numbers in job gains and economic growth, stubbornly high levels of inflation have cast a pall on the public’s view of the economy.
Energy Disruptions
For example, if the other gas stations in the area are charging high, they would keep their price lower to bring more people in. From 2014 through 2023, refining costs and profits accounted for 15.3% of the retail price of gasoline, on average. Gasoline production costs vary with seasonal and regional blending requirements designed to reduce pollution, as well as the cost of required additives including ethanol. The answer to the title question, however, is that President Obama oversaw the highest average annual gasoline prices. The average price during President Trump’s four-year term was very much in line with the second terms of both Bush and Obama until the Covid-19 pandemic sent prices reeling. So, President Trump ends up with the second-lowest four-year average of any President in the past 20 years.
What Are The Factors Determining Gas Price?
Includes frozen and fresh bread.Average consumer prices are calculated for household fuel, motor fuel, and food items from prices collected for the Consumer Price Index (CPI). Fresh whole milk, fortified, sold per gallon regardless of packaging type. Includes organic and non-organic milk.Average consumer prices are calculated for household fuel, motor fuel, and food items from prices collected for the Consumer Price Index (CPI).
There have been two oil price crashes in the the white coat investor past eight years, and many executives believe that another one is inevitable. That has made them hesitant to drill new wells and seriously ramp up production, said Christopher Knittel, an energy economist at Massachusetts Institute of Technology. The lack of investment has led to a decline in output in recent years. Demand fell off sharply during pandemic lockdowns, briefly pushing the price of oil below zero.
- It’s followed by California ($4.45) and Washington ($3.98) as the next two most expensive states to buy gas.
- While 2022 is the year of expensive gas, 2020 is host to all 10 of the cheapest gas prices since 2018.
- Average prices are best used to measure the price level in a particular month, not to measure price change over time.
- They said the price of gasoline today is not all that high when compared with the past three decades.
- The average price of a gallon of gas one year ago today was $3.28.
Regional Dashboards & Data
Gas prices vary by region and are influenced by state and local taxes, supply chain issues and operating costs, according to the EIA. For example, a gallon of gas is cheapest in the Gulf Coast region, where there are multiple oil refineries, low gas taxes, and efficient pipeline and railroad infrastructure. The West Coast region has the highest average price of gas due to higher gas taxes and stricter clean energy standards than other regions. Since 2016, West Coast gas prices have been about 60 cents more expensive than the average in the other regions for the last five years. U.S. gasoline consumption plummeted in 2020 amid COVID-19 restrictions but largely rebounded in 2021. Once crude is refined into gasoline, the fuel has to be shipped to a storage tank, and eventually distributed to local gas stations.
But until why is the consumer price index controversial more supply comes online or demand falls, prices at the pump will likely stay high. If you have a favorite gasoline retailer, consider enrolling in its rewards program to earn points each time you fill up. Points can later be redeemed for discounts on your gas purchases.
The prices fell to $2.43 per gallon in 2015 and $2.14 in 2016. Compared to the previous years, in 2019, gas advanced markets review 2021 stations charged $2.6 USD per gallon. However, in 2020, the price was 2.17, which means the price went down by a total of 17%.
However, there has been a slight decrease in the average price from 2018 to 2021. The states with the highest average prices in 2021 are currently Hawaii at $0.60/eGallon and California at $0.58/eGallon. Some people believe that the cost of an eGallon is understated, as it does not take into account the cost of maintaining and repairing an electric vehicle. However, the Department of Energy argues that electric cars’ maintenance and repair costs are often lower than gasoline cars. Adjusting the price for inflation will give you an idea about the actual growth or seasonal fluctuation in the cost of gas. Here is how you calculate inflation to know how much the gas price has changed over time.
In recent years, it has become a major exporter, sending large quantities to Latin America and Europe. Forms EIA uses to collect energy data including descriptions, links to survey instructions, and additional information. State energy information, including overviews, rankings, data, and analyses. Comprehensive data summaries, comparisons, analysis, and projections integrated across all energy sources. Reserves, production, prices, employment and productivity, distribution, stocks, imports and exports.
President Biden, the belief goes, has now taken actions that have driven up gasoline prices. Inflation is the rate at which the prices of services or products increase. You can also call it the annual product or service price growth. Inflation and gas price have a directly proportional relationship, So when one rises, it also leads the other to increase.