Similarly, prices tend to rise during the spring and summer months when more drivers are on the road. This is 0.24 more per gallon than the average price of regular gas. Moreover, the gas price probably rises in the peak summer and spring because it’s the travel season, and the gas is more likely to evaporate. On the other hand, in winter, the prices are comparatively low.
The fuel-savings app GasBuddy projects prices will probably average $4.25 in May and stay over $4 until November. 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. The fuel-savings app GasBuddy projects prices will probably average $4.25 in May and stay over $4 until November.
Historical Gas Prices by Year: What Affects Them 1978-Today
The average national price for a gallon of regular gasoline touched $4.17, according to AAA, the highest price ever, not accounting for inflation. When global benchmark prices (like Brent or WTI) rise—due to OPEC production cuts, geopolitical tensions, or sanctions—retail gasoline follows suit . In 2012, crude oil prices rose due to foreign unrest again. Iran violated the International Atomic Energy Agency (IAEA) transparency requirements by refusing to disclose its nuclear activities. Iranian officials even denied IAEA inspector requests to enter the Parchin military base and search for evidence of nuclear development. Hurricane Katrina brought gas prices up to $3.20 per gallon.
Are Gas Prices Really the Highest in History?
- Buyers of crude oil were concerned the crisis would spread to other countries in the region.
- This can lead to buying less of something or waiting to make a big purchase.
- As a result, buyers covered their current demand and increased their inventories, further affecting the shortage and driving up prices.
- The US resorted to importing about 20% less crude oil that year, which helped the nation moderate the impact of higher foreign crude oil costs.
Seasonal reformulations—winter blends vs. cleaner-burning summer blends—also add 5–15 ¢ /gal in the spring . Sign up for our daily newsletter for the latest financial news and trending topics. Get the latest news on investing, money, and more with our free newsletter. Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date.
By 2005, the price reached an average of $2.30 per gallon. By 1980, the price reached an average of $1.25 per gallon. By 1979, the Best ecommerce stock price reached an average of $0.90 per gallon. In the last five years, the price of gas has remained steady between $2.74 and $3.29 per gallon. The national average state tax for gasoline is 31.67 cents per gallon. Inflation is the rate at which the prices of services or products increase.
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- Drivers with a license plate ending in an even number, including zero, could buy gas on even-numbered days.
- The average national price for a gallon of regular gasoline touched $4.17, according to AAA, the highest price ever, not accounting for inflation.
- The previous high was $4.11 on July 17, 2008, according to AAA.
- Another interesting way to think about the time price of a resource is to consider how many gallons of gasoline one hour of time would buy.
In 2014, the gas price was at its peak at a rate of $3.62 per gallon. The prices fell to $2.43 per gallon in 2015 and $2.14 in 2016. Compared to the previous years, in 2019, gas 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%. Another interesting way to think about the time price of a resource is to consider how many gallons of gasoline one hour of time would buy. This ratio reveals how much abundance is changing over time.
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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. The chart below shows the average gasoline cost per year based on adjusted inflation in 2020. After rising dramatically following Russia’s invasion of Ukraine, the price of gas reached a record, topping a high that had stood for nearly 14 years. Some gas locations reported prices about $2 over the state average.
In 2015, the highest average price was in Alaska at $0.42/eGallon, while the lowest was in South Carolina at $0.20/eGallon.
Consumers were only allowed to purchase gas every other day, depending on the last number on their license plate. Drivers with a license plate ending in an even number, including zero, could buy gas on even-numbered days. In the same way, drivers with license plates ending with an odd number could buy gas on odd-numbed days. During an address to the nation on TV and radio, President Nixon revealed Project Independence and said this would lead to greater self-sufficiency for America.
While this sounds ridiculously inexpensive right now, it wasn’t at the time. As of Tuesday morning, the average national price for a gallon of regular gasoline touched $4.17, according to AAA, the highest price ever, not accounting for inflation. That was up from $4.07 on Monday and $3.61 a week earlier. Gas prices increased in 2005 as well, but this was due to natural disasters instead of foreign unrest. Hurricane Katrina occurred in August 2005, affecting 25% of US crude oil production.
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By 1974, the price reached an average of $0.65 per gallon when adjusted for inflation in 2022. People drive more during warmer weather, so the demand is higher. Abrupt increases or decreases in gas prices are usually due to a disruption in crude oil supplies, the operations, or delivery of gas pipelines. Therefore, constrained supply and rising demand for gasoline have made people suffer a lot these years. Seasonal demands, the value of the U.S. dollar, and refining costs are a few reasons that cause the gas price to hit a plateau. An eGallon compares the amount of energy it takes to fuel a car with electricity with the amount of energy to fuel a car with gasoline.
The more people, the more likely they drive cars and trucks, so more gasoline is required. While 1980 proved to be a slightly more financially secure year for oil, the price was $38 per barrel in 1979. The cost for diesel is nearing the record of $4.84, also set in July 2008. The price for a gallon of diesel is $4.75, more than double what it was in October 2020. As of Tuesday morning, 28 states have average prices over $4. Only five states – South Dakota, Kansas, Missouri, Oklahoma and Arkansas – averaged less than $3.80.
The US resorted to importing about 20% less crude oil that year, which helped the nation moderate the impact of higher foreign crude oil costs. At the same time, American refineries operated at 76%, down 9% from the previous year. Gas prices have reached their all-time high in recent history. Last year the average peaked on June 14, 2022, at $5.02 per gallon. Luckily, although they still remain high, they have slightly dipped in the past year. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information.
Buyers of crude oil were concerned the crisis would spread to other countries in the region. As a result, buyers covered their current demand and increased their inventories, further affecting the shortage and driving up prices. In a Gas Buddy study, 19 states had the highest gas prices at the end of the work week. Winter months usually have lower gas prices since people tend to drive less due to the poor road conditions. Gas is also cheaper for refiners because they don’t have to worry about evaporation.