Listen Now: Morning News

The Highs and Lows of Gas Prices

Gas prices are reaching some of their highest levels ever, and that’s saying something. Prices have fluctuated significantly over the years based on a variety of factors, but the current conditions have pushed them to new peaks.

The data journalism news organization Stacker used figures from the Bureau of Labor Statistics to measure prices at the pump for the last 85 years to determine the highest and lowest after factoring for inflation. We see that prices now are among the highest in history, but what were the previous peaks?

In 2012, gas sold for $3.64 a gallon or $4.33 when adjusted for inflation. Stacker reported that Triple AAA attributed the rise in fuel prices then to the “devastating impact of Hurricane Sandy, among other costly storms, as well as continued tensions in the Middle East.

The previous year, a gallon cost $3.53 or $4.28 when factoring for inflation. Stacker reported the record highs were “attributed to inflated costs in the crude oil market, after the Obama administration and the U.N. Security Council instigated a military intervention in Libya,” one of the world’s largest oil producers at the time.

Perhaps one of the reasons for the extreme sticker shock now is that we are coming off a period of historically low gas prices.

Stacker reports that the average prices were near historic lows the previous two years–$2.17 a gallon in 2020 ($2.29 inflation-adjusted), which was the 15th least expensive in the last 85 years and $2.83 in 2021 (no inflation adjustment necessary). The pandemic slowed the economy, limited travel and pushed demand down, which depressed the price.

Between 1937 and 1945, a quarter could buy you a gallon of gas with a little change left over. In 1937, the average price for a gallon was just $0.19. However, according to Stacker, that was also the 10th most expensive year. When factoring for inflation, that gallon would cost you $3.60 in today’s dollars.

Americans found the best deals at the gas pump from 1997 to 1998 when prices fell from $1.23 to just $1.06 per gallon, or $1.78 inflation adjusted. These were “the lowest since the government began tracking gasoline prices,” Stacker reported. “In some states, average costs fell below a dollar.”

Gasoline prices rose dramatically in 1973-74 because of the Arab Oil Embargo. The average price in 1974 was $0.55 a gallon, which seemed high at the time because it was almost $0.20 higher than 1972. In addition, supplies ran short and gas lines ran long.

Patrick DeHaan, head of petroleum analysis for GasBuddy.com, said on Talkline Thursday he believes gas prices will continue to rise, but there is no way to know the ceiling. At some point, people will drive less, if they can, lowering demand, which should help bring down the price.

But the future of gas prices is unknowable because they may well be impacted dramatically by what happens with the Russian invasion of Ukraine, and there is little consolation in knowing we are living in a moment of gas price history.

And finally, here’s an interesting exercise: Check the Stacker website to find out the price of gas for the year you were born or when you bought your first vehicle.

 

 





More Hoppy's Commentary

Hoppy's Commentary
Some notes on Easter and religion as we begin the holiday
March 29, 2024 - 12:48 am
Hoppy's Commentary
Third party and independent presidential candidates rarely get traction in West Virginia
March 28, 2024 - 12:10 am
Hoppy's Commentary
Let's talk about the officiating in the WVU-Iowa game
March 27, 2024 - 12:47 am
Hoppy's Commentary
WVU basketball looks to the future
March 26, 2024 - 12:15 am


Your Comments