Imagine you could fill your tank in 1929 for a dime, because while the price was 21 cents a gallon, the real cost in today’s money was a staggering $3.70.
Key Takeaways
- In 1929, the average price of gasoline in the US was $0.21 per gallon in nominal dollars
- During 1945, US retail gasoline averaged $0.21 per gallon nominally, reflecting post-WWII stability
- In 1970, the US average gas price reached $0.36 per gallon nominally amid rising demand
- As of October 7, 2024, California average gas price is $4.85 per gallon for regular
- Hawaii's average regular gas price on Oct 7, 2024 stands at $4.65 per gallon
- Washington state gas averages $4.55 per gallon regular on Oct 7, 2024
- As of Oct 2024, Hong Kong has the highest global gas price at $2.98 per liter
- Central African Republic averages $1.45 per liter gasoline in Oct 2024
- US gasoline price averages $0.85 per liter globally in Oct 2024
- WTI crude oil averaged $82.50 per barrel in Oct 2024, impacting gas by 60% correlation
- US federal gas tax is $0.184 per gallon unchanged since 1993
- Average state gas taxes total $0.31 per gallon in 2024, varying by state
- EIA forecasts US gas at $3.45/gal average 2025 from crude $75/bl
- Short-Term Energy Outlook predicts $3.20/gal US 2024 annual average
- IEA Oil Market Report Oct 2024 sees global oil $75/bl 2025
Gas prices have fluctuated widely due to global events and market forces.
Factors Influencing Prices
- WTI crude oil averaged $82.50 per barrel in Oct 2024, impacting gas by 60% correlation
- US federal gas tax is $0.184 per gallon unchanged since 1993
- Average state gas taxes total $0.31 per gallon in 2024, varying by state
- Refining margins added $0.50 per gallon to US gas in summer 2024
- Brent crude at $84 per barrel Oct 2024 drives 55% of pump price
- Distribution/marketing costs $0.20-0.30 per gallon in US 2024
- Taxes comprise 15-20% of US retail gas price on average
- Crude oil volatility increased gas prices 25% in 2022
- Geopolitical events like Ukraine war added $1.00/gal to 2022 peaks
- US gasoline demand fell 5% in 2020 pandemic, lowering prices 40%
- Ethanol blending (10%) reduces US gas price by $0.10/gal
- Seasonal summer blends increase refining costs by $0.15/gal
- Hurricane disruptions in 2024 added $0.20/gal temporarily
- OPEC+ cuts 2mb/d in 2024 supported crude $80+
- US shale production 13mb/d in 2024 capped price rises
- Global refining capacity shortages added 10% to margins 2024
- Inflation raised non-crude gas costs 8% in 2023
- EV adoption slowed demand growth to 1% annually
- Carbon taxes in Europe add €0.20-0.50/liter to prices
- Subsidies in Middle East keep prices under $1/gal equivalent
- US gasoline inventories at 230mb Oct 2024 influence spot prices
- Exchange rates: Strong USD lowers import gas costs 5%
Factors Influencing Prices Interpretation
While a volatile crude oil market sets the stage, the final price we curse at the pump is a complex cocktail of geopolitics, refining struggles, taxes frozen in time, and even the weather, proving we're paying for far more than just the oil itself.
Future Projections
- EIA forecasts US gas at $3.45/gal average 2025 from crude $75/bl
- Short-Term Energy Outlook predicts $3.20/gal US 2024 annual average
- IEA Oil Market Report Oct 2024 sees global oil $75/bl 2025
- OPEC projects demand growth 1.2mb/d 2025 pushing prices up
- GasBuddy predicts US Thanksgiving 2024 gas at $3.10/gal national
- BloombergNEF forecasts $70/bl WTI average 2025 with supply glut
- US DOE Annual Energy Outlook 2024 sees gas $3.50/gal by 2030
- Goldman Sachs predicts Brent $75/bl 2025 amid non-OPEC supply
- JP Morgan forecasts US gas under $3/gal winter 2024-25
- Wood Mackenzie sees peak oil demand 2028 stabilizing prices
- IEA Stated Policies Scenario: oil $60/bl by 2030, gas follows
- Rystad Energy predicts $80/bl Brent 2025 from geopolitics
- US gasoline consumption to fall 0.5% in 2025 per EIA
- Global gas demand peaks 2026 at 102mb/d per IEA
- California gas projected $5.00/gal average 2025 from taxes
- National average Christmas 2024 gas $3.05/gal per GasBuddy
- Long-term: US gas $4.00/gal by 2035 inflation-adjusted
- Europe petrol €1.80/liter 2025 with ETS carbon pricing
- China gasoline steady ¥7.5/liter 2025 with controls
- India petrol to ₹105/liter 2025 from duties
- Brent to average $73/bl Q4 2024 per EIA
- US retail gas falls to $2.90/gal by Dec 2024 per forecast
Future Projections Interpretation
Despite the cacophony of forecasters, it seems the only certainty is that while we argue over pennies per gallon this year, the long-term outlook suggests we'll be nostalgically reminiscing about the days of three-dollar gas.
Global Prices
- As of Oct 2024, Hong Kong has the highest global gas price at $2.98 per liter
- Central African Republic averages $1.45 per liter gasoline in Oct 2024
- US gasoline price averages $0.85 per liter globally in Oct 2024
- Netherlands gas at $2.15 per liter in Oct 2024, highest in Europe
- Venezuela lowest at $0.035 per liter gasoline Oct 2024 due to subsidies
- UK average petrol price £1.45 per liter ($1.85 USD) Oct 2024
- Germany gasoline €1.85 per liter ($2.00 USD) in Oct 2024
- France averages €1.90 per liter ($2.05) Oct 2024
- Italy gas €1.92 per liter ($2.07) Oct 2024
- Spain petrol €1.70 per liter ($1.83) Oct 2024
- Canada gasoline averages CAD 1.65 per liter ($1.20 USD) Oct 2024
- Australia petrol AUD 1.85 per liter ($1.23 USD) Oct 2024
- Japan gasoline ¥172 per liter ($1.15 USD) Oct 2024
- India petrol ₹95 per liter ($1.13 USD) Oct 2024
- Brazil gasoline R$5.60 per liter ($1.00 USD) Oct 2024
- South Africa petrol R23 per liter ($1.30 USD) Oct 2024
- Saudi Arabia gasoline SAR 2.33 per liter ($0.62 USD) Oct 2024
- Russia averages RUB 65 per liter ($0.65 USD) Oct 2024
- China gasoline CNY 8.0 per liter ($1.13 USD) Oct 2024
- Mexico petrol MXN 25 per liter ($1.25 USD) Oct 2024
- UAE gasoline AED 3.0 per liter ($0.82 USD) Oct 2024
- Iran lowest subsidized at IRR 3000 per liter ($0.07 USD) Oct 2024
- Denmark highest Europe at DKK 15.5 per liter ($2.25 USD) Oct 2024
- Sweden gasoline SEK 20 per liter ($1.90 USD) Oct 2024
- Norway petrol NOK 21 per liter ($1.95 USD) Oct 2024
- Finland averages €1.95 per liter ($2.10) Oct 2024
- Global average gasoline price Oct 2024 is $1.25 per liter
Global Prices Interpretation
The world's gas prices paint a map of economic reality, from the painful pump of Hong Kong to the subsidized fantasy of Venezuela, proving that the cost of a liter is less about crude oil and more about a country's priorities, politics, and pain tolerance.
Historical US Prices
- In 1929, the average price of gasoline in the US was $0.21 per gallon in nominal dollars
- During 1945, US retail gasoline averaged $0.21 per gallon nominally, reflecting post-WWII stability
- In 1970, the US average gas price reached $0.36 per gallon nominally amid rising demand
- 1979 saw US gas prices average $0.86 per gallon nominally due to the oil crisis
- By 1980, nominal US gas price hit $1.19 per gallon from Iranian Revolution impacts
- In 1990, US average gasoline price was $1.15 per gallon nominally post-Gulf War
- 2000 US nominal gas average was $1.51 per gallon with growing SUV popularity
- Peak 2008 nominal US gas price averaged $3.27 per gallon amid financial crisis
- In 2011, US gas averaged $3.53 per gallon nominally due to Arab Spring
- 2012 saw US nominal average of $3.63 per gallon from high crude prices
- By 2013, US gas price dipped to $3.53 per gallon nominally
- 2014 US average was $3.37 per gallon nominally with shale boom
- In 2015, nominal US gas averaged $2.43 per gallon from oil glut
- 2016 US nominal average fell to $2.14 per gallon amid oversupply
- 2017 saw US gas at $2.42 per gallon nominally with production rise
- 2018 nominal US average was $2.72 per gallon from trade tensions
- In 2019, US gas averaged $2.60 per gallon nominally pre-COVID
- 2020 nominal US average dropped to $2.17 per gallon due to pandemic demand crash
- 2021 saw US gas rise to $3.02 per gallon nominally from recovery
- In 2022, US nominal average hit $3.95 per gallon amid Ukraine war
- Adjusted for inflation to 2023 dollars, 1929 US gas price was $3.70 per gallon
- Inflation-adjusted 1974 US gas peaked at $5.14 per gallon in 2023 dollars
- 1980 inflation-adjusted US gas was $4.40 per gallon in 2023 dollars
- 2008 peak inflation-adjusted was $4.60 per gallon in 2023 dollars
- Lowest inflation-adjusted US gas was 1998 at $1.87 per gallon in 2023 dollars
- Weekly US regular gas average on Jan 1, 2023 was $3.31 per gallon
- On July 17, 2022, US weekly gas average peaked at $5.016 per gallon
- Dec 25, 2023 US weekly gas was $3.08 per gallon
- In Q1 2023, US diesel averaged $5.20 per gallon weekly
- 1930s US gas prices averaged under $0.20 nominal amid Depression
Historical US Prices Interpretation
So while our nominal gas prices seem to have staged a rather dramatic escape from the dime store over the last century, the sobering, inflation-adjusted reality is that we've mostly just been paying a consistent, geopolitical anxiety tax to keep the tank full.
US State Prices
- As of October 7, 2024, California average gas price is $4.85 per gallon for regular
- Hawaii's average regular gas price on Oct 7, 2024 stands at $4.65 per gallon
- Washington state gas averages $4.55 per gallon regular on Oct 7, 2024
- Nevada average regular gas is $4.25 per gallon as of Oct 7, 2024
- Oregon gas averages $4.20 per gallon regular on Oct 7, 2024
- Alaska's regular gas average is $4.15 per gallon Oct 7, 2024
- New York state average regular gas $3.45 per gallon Oct 7, 2024
- Florida average regular $3.15 per gallon as of Oct 7, 2024
- Texas gas averages $2.95 per gallon regular Oct 7, 2024
- Mississippi lowest at $2.75 per gallon regular Oct 7, 2024
- Oklahoma average $2.80 per gallon regular Oct 7, 2024
- Georgia state gas $3.05 per gallon regular Oct 7, 2024
- Illinois average regular $3.40 per gallon Oct 7, 2024
- Pennsylvania gas $3.35 per gallon regular Oct 7, 2024
- Michigan average $3.30 per gallon regular Oct 7, 2024
- Ohio state gas $3.15 per gallon regular Oct 7, 2024
- Indiana average regular $3.10 per gallon Oct 7, 2024
- Kentucky gas $2.95 per gallon regular Oct 7, 2024
- Tennessee average $2.90 per gallon regular Oct 7, 2024
- Alabama state gas $2.85 per gallon regular Oct 7, 2024
- Louisiana average regular $2.90 per gallon Oct 7, 2024
- Arkansas gas $2.88 per gallon regular Oct 7, 2024
- Missouri average $2.95 per gallon regular Oct 7, 2024
- Iowa state gas $3.05 per gallon regular Oct 7, 2024
- Nebraska average regular $3.10 per gallon Oct 7, 2024
- Kansas gas $2.98 per gallon regular Oct 7, 2024
- North Dakota average $3.20 per gallon regular Oct 7, 2024
- South Dakota gas $3.15 per gallon regular Oct 7, 2024
- Wyoming average regular $3.40 per gallon Oct 7, 2024
- US national average regular gas price as of Oct 7, 2024 is $3.15 per gallon
US State Prices Interpretation
It's oddly cheaper to fuel a cross-country road trip than it is to simply commute down the Pacific Coast, as California's $4.85 premium drags the national average up like an anchor while Mississippi happily floats at $2.75.
Sources & References
- Reference 1EIAeia.govVisit source
- Reference 2INFLATIONDATAinflationdata.comVisit source
- Reference 3GASPRICESgasprices.aaa.comVisit source
- Reference 4GLOBALPETROLPRICESglobalpetrolprices.comVisit source
- Reference 5APIapi.orgVisit source
- Reference 6IEAiea.orgVisit source
- Reference 7OPECopec.orgVisit source
- Reference 8BLSbls.govVisit source
- Reference 9FEDERALRESERVEfederalreserve.govVisit source
- Reference 10GASBUDDYgasbuddy.comVisit source
- Reference 11ABOUTabout.bnef.comVisit source
- Reference 12GOLDMANSACHSgoldmansachs.comVisit source
- Reference 13JPMORGANjpmorgan.comVisit source
- Reference 14WOODMACwoodmac.comVisit source
- Reference 15RYSTADENERGYrystadenergy.comVisit source
- Reference 16ENERGYenergy.ca.govVisit source
- Reference 17ECec.europa.euVisit source
- Reference 18PPACppac.gov.inVisit source