The Five Highest Historical Oil Prices in History

Despite the high gas price, many people continue to rely on their vehicles as their main mode of transportation. Marketing, distribution, and retail dealer costs also affect the price of gas. Usually, gasoline is shipped from refineries to the terminal in an area which is then transferred to the gas stations in that Pacific area. In the United States, refining costs vary according to seasons and regions, based on crude oil and oil refining technology. Moreover, the price of gasoline also differs due to the ingredients blended with the oil, such as fuel ethanol. Crude oil is the most significant factor affecting the direction of gas prices.

According to the Department of Energy, an eGallon costs about $1.00 to drive an electric vehicle, the same distance as a gallon of gasoline costs in a conventional car. Although few refiners operate or own retail outlets, few individual businesses purchase gasoline from marketers and refiners and sell it to the public. The gas price also changes based on the marketing strategy used by the gas station owners.

• By 1974, the price reached an average of $0.65 per gallon when adjusted for inflation in 2022.
• Oil prices have a significant impact on the lifestyle and cost of living for most of the world.
• By 1980, the price reached an average of $1.25 per gallon.

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Stations in Los Angeles and San Francisco sell regular gas for more than $6 per gallon, some reaching nearly $7. In the city of Gorda, about 140 miles south of San Francisco on the coast, one station charged $7.59, KSBW reported. As is historically the case, California has the most expensive prices in the country, averaging $5.44 a gallon as of Tuesday.

In 2015, the highest average price was in Alaska at $0.42/eGallon, while the lowest was in South Carolina at $0.20/eGallon.

• Suppose, in January 1950, a gallon of gasoline cost 20 cents in the US.
• In 2014, the gas price was at its peak at a rate of $3.62 per gallon.
• They’re both fossil fuels and made up of hydrocarbons, but crude oil stays in a liquid state and natural gas exists in a gaseous state.
• There were also production disruptions in countries such as Syria, Sudan, and Yemen.
• The last time the average price of gas was less than $2 was 15 years ago, in 2004.

Key Factors Affecting Gas Prices

Other parts of the country, especially Northern states, were not as affected by rising gas prices because their refineries had easier access to Canadian oil. In terms of inflation, 2008 was the year oil was at its most expensive in the course of history. Generally, gas station owners change gas prices in the late morning/early afternoon when they learn that other gas station owners are changing prices. Oil prices have a significant impact on the lifestyle and cost of living for most of the world. Read on to find out which oil prices were the highest in history accounting for inflation. When the US entered a recession in late 2007, the nation’s development of natural gas production and the prices of natural gas and crude oil rose substantially.

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.

Geopolitical & Economic Events

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.

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USA Today recently reported that gas prices are the most expensive that they’ve been in U.S. history, breaking the record from 2008. In 1929 one hour of time would get you around 2.5 gallons. By 1973, gasoline abundance had increased 410 percent, to 12.75 gallons per hour. Then the Organization of the Petroleum Exporting Countries (OPEC) cartel raised prices dramatically, so that by 1981 one hour would only get you 7.63 gallons of gasoline. By 1998 the number of gallons per hour was up to 17.15, the highest rate on record.

Gas Price Changes

Arab states, determined to regain these territories, started the Yom Kippur War in October 1973. President Nixon requested Congress send $2.2 billion in emergency military aid to Israel in an attempt to end the Yom Kippur War. He said this money would go toward maintaining military balance and stability in the Middle East. The table below displays the average eGallons price per state. From 2015 to 2021, the average eGallons price per state has been varying greatly.

Historical Gas Prices by Year: What Affects Them 1978-2025

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.

GAS PRICES IN 1980 REACHED $1.25

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.

September’s Hurricane Rita also caused supply disruptions and brought gas prices up to $2.93. In response, the Organization of Arab Petroleum Exporting Countries (OAPEC) put an oil embargo on the United States into effect. This banned crude oil from being exported to the United States and introduced cuts in oil production, leading to an increase in the price of oil.

The average price of gas in the 1990’s was just shy of $1.15. China built more than 80,000 miles of interprovincial highway in 2020. On the other hand, the U.S. has 47,000 miles of interstate highway. These numbers indicate that more people would drive vehicles and use gasoline, thus increasing the price of those specific areas.

Gas prices rise and fall according to supply and demand. If the supply is down and the demand is high, prices increase. If the demand is low and the Finance derivatives examples supply solid, prices tend to fall. Adjusting the price for inflation will give you an idea about the actual growth or seasonal fluctuation in the cost of gas. Here is how you calculate inflation to know how much the gas price has changed over time.

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