July 07,2022
Since Monday, the national average for a gallon of regular gasoline has decreased by a nickel to $4.75. According to new data from the Energy Information Administration (EIA), gas demand increased from 8.92 million b/d to 9.41 million b/d ahead of the 4th of July holiday, while total domestic gas stocks decreased by 2.5 million bbl. Typically, these supply/demand trends would put upward pressure on pump prices; however, falling oil prices have contributed to lower pump prices.
Since last Thursday, these 10 states have seen the largest decreases in their averages: Illinois (-16 cents), Texas (-15 cents), Delaware (-15 cents), Ohio (-13 cents), Florida (-13 cents), Indiana (-13 cents), Virginia (-13 cents), Arizona (-12 cents), South Carolina (-12 cents) and Alabama (-12 cents).
Gas prices follow whatever oil is doing. Oil prices were more stable in the 1990s. Maybe OPEC unleashed oil prices after 2000. The current gas price is within the historical range of $1.7 to $5.3, but the $5 pump price is a bit of a shock. I saw that the previous customer pumped 1.5 gallons for $7. People living paycheck-to-paycheck are having to budget.
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Why Gas Prices Are So High, June 14, 2022
Since 1980, inflation adjusted gas prices ranged from $1.7 to $5.3 (2022 dollars).
Gas prices dropped in the 1980s from $4.5 to $2. (inflation adjusted, 2022 dollars)
Gas prices were steady in the 1990s.
Gas prices have been more volatile since 2000. https://www.nytimes.com/interactive/2022/06/14/business/gas-…