- U.S. regular gasoline averaged about $1.06 per gallon in December 1998, the lowest nominal price in the EIA weekly series.
- The all-time nominal high was $5.02 per gallon in June 2022, nearly 5 times the 1998 low.
- Adjusted for inflation (2024 dollars), the 2008 peak of $4.11 was roughly equivalent to $5.80 in today's dollars.
- Crude oil costs account for roughly 50-60% of the retail gasoline price, making global oil markets the dominant price driver.
01 Introduction
Gasoline prices are among the most visible and closely watched consumer costs in the United States. The U.S. Energy Information Administration (EIA) has tracked weekly retail gasoline prices since 1993, providing a detailed record of how pump prices have moved over more than three decades. This article examines the 25-year history from 1998 through 2024, highlighting major price events, inflation-adjusted trends, and the underlying factors that drive long-term price movements.
EIA Weekly Retail Gasoline and Diesel Prices series, published every Monday at eia.gov/petroleum/gasdiesel/Understanding gasoline price history helps drivers contextualize current prices and plan for future fuel costs. While short-term price movements are unpredictable, long-term patterns reveal the structural forces that shape what Americans pay at the pump.
EIA Short-Term Energy Outlook; EIA "What We Pay for in a Gallon of Regular Gasoline" explainer02 25-Year Price Timeline
The following table presents annual average retail prices for regular gasoline in the United States from 2000 through 2024. Prices represent the national average for all formulations as reported by the EIA.
EIA Weekly Retail Gasoline and Diesel Prices, U.S. Regular All Formulations, annual averages| Year | Avg. Price ($/gal) | Notable Events |
|---|---|---|
| 2000 | $1.51 | Post-1998 recovery; OPEC production cuts |
| 2002 | $1.36 | Post-9/11 economic slowdown |
| 2004 | $1.88 | Rising global demand, Iraq instability |
| 2006 | $2.59 | Hurricane recovery, growing Asian demand |
| 2008 | $3.27 | Peak of $4.11 in July; financial crisis crash |
| 2010 | $2.79 | Post-recession recovery begins |
| 2012 | $3.64 | Arab Spring supply disruptions |
| 2014 | $3.37 | U.S. shale boom begins to add supply |
| 2016 | $2.14 | Oil price collapse from oversupply |
| 2018 | $2.72 | OPEC cuts, moderate global demand |
| 2020 | $2.17 | Pandemic low of ~$1.77 in April |
| 2022 | $3.97 | Peak of $5.02 in June; supply disruptions |
| 2024 | $3.31 | Market stabilization |
03 Key Price Points
Four price points stand out in the 25-year record, each reflecting a distinct economic and geopolitical context:
December 1998: ~$1.06/gallon. The Asian financial crisis of 1997-98 collapsed global oil demand while OPEC maintained high production. Crude oil dropped below $12 per barrel, pulling gasoline to its lowest level in the EIA weekly series. Adjusted for inflation, $1.06 in 1998 is equivalent to roughly $2.00 in 2024 dollars.
EIA Weekly Retail Gasoline Prices, week of December 21, 1998: $1.061/gal; BLS CPI Inflation Calculator (1998 to 2024)July 2008: ~$4.11/gallon. A confluence of surging global demand (especially from China), supply constraints, and speculative activity pushed crude oil above $145 per barrel. Gasoline peaked at $4.11 nationally before the financial crisis drove prices back below $1.70 by December 2008.
EIA Weekly Retail Gasoline Prices, week of July 7, 2008: $4.114/gal; EIA Petroleum & Other Liquids data: WTI crude $145.29 on July 3, 2008April 2020: ~$1.77/gallon. The COVID-19 pandemic caused the sharpest demand drop in modern history. U.S. gasoline consumption fell by roughly 40-50% in April 2020. WTI crude oil briefly traded at negative values (-$37/barrel) on April 20, 2020. Retail gasoline averaged about $1.77 nationally.
EIA Weekly Retail Gasoline Prices, week of April 27, 2020: $1.774/gal; EIA Weekly U.S. Product Supplied of Finished Motor Gasoline, April 2020June 2022: ~$5.02/gallon. Post-pandemic demand recovery combined with global supply disruptions pushed gasoline to its all-time nominal high. The national average exceeded $5.00 per gallon for the first time in recorded EIA data.
EIA Weekly Retail Gasoline Prices, week of June 13, 2022: $5.016/galEstimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator04 Inflation-Adjusted Prices
Nominal prices do not account for the declining purchasing power of the dollar. When adjusted for inflation using the Bureau of Labor Statistics Consumer Price Index (CPI), the gasoline price picture changes significantly.
BLS CPI-U, All Urban Consumers, U.S. City Average, All Items (1982-84=100); BLS CPI Inflation Calculator| Year | Nominal ($/gal) | Adj. to 2024 $ | Context |
|---|---|---|---|
| 1998 | $1.06 | ~$2.00 | Historical low |
| 2004 | $1.88 | ~$3.05 | Pre-spike era |
| 2008 | $4.11 | ~$5.80 | Highest in real terms |
| 2012 | $3.64 | ~$4.85 | Sustained high period |
| 2016 | $2.14 | ~$2.75 | Shale oversupply |
| 2020 | $1.77 | ~$2.10 | Pandemic low |
| 2022 | $5.02 | ~$5.35 | Nominal all-time high |
| 2024 | $3.31 | $3.31 | Reference year |
In real (inflation-adjusted) terms, the July 2008 peak remains the most expensive gasoline Americans have paid, at roughly $5.80 in 2024 dollars. The 2022 nominal peak of $5.02, while higher in absolute terms, was equivalent to about $5.35 in 2024 dollars due to the intervening inflation.
BLS CPI Inflation Calculator: $4.11 in July 2008 = approximately $5.80 in 2024 dollars; $5.02 in June 2022 = approximately $5.35 in 2024 dollars05 What Drives Long-Term Trends
According to EIA data, the retail price of gasoline is determined by four main components, with their approximate long-term average shares:
- Crude oil costs: ~50-60% of the pump price. This is the single largest component and the primary driver of price swings.
- Refining costs and profits: ~10-18%. Refinery outages, seasonal blend changes, and capacity constraints affect this share.
- Distribution and marketing: ~12-18%. Pipeline, trucking, and retail station costs are relatively stable.
- Federal and state taxes: ~12-18%. The federal excise tax of $0.184/gallon has not changed since 1993. State taxes vary widely.
Over the 25-year period, the dominant pattern is clear: gasoline prices track crude oil prices with a typical lag of 2-6 weeks. Global events that disrupt oil supply or demand, including geopolitical conflicts, OPEC production decisions, economic recessions, pandemics, and the growth of U.S. shale production, are the primary forces shaping long-term gasoline price trends.
EIA Today in Energy, "Gasoline prices tend to have little effect on demand for car travel" (2014); EIA Short-Term Energy Outlook methodologyThe U.S. shale revolution, which ramped up significantly after 2010, added enough domestic oil production to shift the U.S. from a net importer to a net exporter of petroleum products. This structural change has generally moderated gasoline price spikes compared to earlier decades, though the U.S. remains connected to global oil markets.
EIA U.S. Crude Oil Production data; EIA Monthly Energy Review: U.S. became net total energy exporter in 201906 Impact on Annual Fuel Spending
To illustrate how these price changes affect actual driving costs, the table below shows the annual fuel cost for a vehicle averaging 25 MPG and driving 12,000 miles per year at various historical price points.
Calculated: 12,000 miles / 25 MPG = 480 gallons × price per gallon. Price data from EIA.| Year / Price Point | Price ($/gal) | Annual Fuel Cost | Monthly Cost |
|---|---|---|---|
| 1998 Low ($1.06) | $1.06 | $509 | $42 |
| 2008 Peak ($4.11) | $4.11 | $1,973 | $164 |
| 2020 Low ($1.77) | $1.77 | $850 | $71 |
| 2022 Peak ($5.02) | $5.02 | $2,410 | $201 |
| 2024 Average ($3.31) | $3.31 | $1,589 | $132 |
The difference between the lowest and highest historical prices translates to a range of roughly $500 to $2,400 per year in fuel spending for the same vehicle. This nearly 5x variation underscores why gasoline prices have such a significant impact on household budgets, and why fuel-efficient vehicles provide more consistent cost protection against price volatility.
Calculation based on EIA historical price extremes and EPA average new vehicle fuel economy (~25 MPG)Estimate your vehicle's driving cost using official EPA fuel economy data.
Use the Calculator07 Data Sources
- U.S. Energy Information Administration: Weekly Retail Gasoline and Diesel Prices, U.S. Regular All Formulations (1993-present). eia.gov
- U.S. Energy Information Administration: What We Pay for in a Gallon of Regular Gasoline. eia.gov
- Bureau of Labor Statistics: CPI Inflation Calculator and CPI-U Historical Data. bls.gov
- U.S. Energy Information Administration: Short-Term Energy Outlook (STEO). eia.gov