Historical Gas Prices

[mobyss]

I know everyone across the political spectrum loves to complain about high gas prices, but adjusted for inflation they are really low or average by historical standards. Does this matter? The US did "ok" throughout the 1940's, 50's, 60's, then the late 70's were bad - but then a boom in the mid-80's through 2000. Even now at $3.00 gas is cheaper than it was in 1979.

[mobyss]

1. I guess we are pushing the high end...

Looking at the graph again - I guess we are pushing the higher end of inflation-adjusted prices.

[Selatius]

2. I believe you are counting your chickens before they hatch.

If you will note the inflation adjusted redline, we are moving up.

[HiFructosePronSyrup]

3. you're misreading the graph.

Basically, it hasn't been this high since cars were for the rich and people were still using horses and buggies.

[fasttense]

Around here gas is $3.00/gal. This chart doesn't even show that.

$3.00/gal. is above that peak noted on the chart in about 1981. Note where it was during the Great Depression. We are now above that. Dose that tell you anything?

[JohnnyRingo]

4. Let's see.....Who provided the numbers for that graph?

"American Petroleum Institute"

That's probably some consumer watchdog group.
Hahaha
I don't have the capacity to convert the cost vs inflation, but I'm suspicious of being misled by the wolves outside the henhouse.

on edit...Welcome to DU

[AllegroRondo]

5. Your last sentance is incorrect.

"Even now at $3.00 gas is cheaper than it was in 1979."

Look closely at the graph again - thats HIGHER than 1979. Higher than any price since 1919.

[Roland99]

6. "sentence"

:P



BTW, notice how gas prices have gone up 50% since the beginning of the year?


50%!!!!

[WI_DEM]

7. Luckily the high price of gas may be the undoing of the Republicans

in November.

[SmokingJacket]

8. We use a lot more, these days.

Can't really compare to 1918, for instance.

[JohnnyRingo]

9. I had to think about that chart for a while.

Then I went to the site.
It seems in the text that the chart indicates the cost of a barrel of oil adjusted for inflation. Somehow the preparer substituted cost per gallon of gasoline.
I think the complaint of price gouging involves gas rising faster thatn the price of crude"

<excerpt>
The above chart shows oil prices adjusted for inflation. As you can see current prices are not at their all time highs when adjusted for inflation. The real peak occurred back in 1980. Back then the monthly average price peaked at $38 per barrel (although the intraday prices spiked much higher).

The common price quoted is for the all time high of Oil prices is the price that the highest barrel ever sold for. That price doesn't really have any effect on the price consumers paid. What really matters is the average price the refineries had to pay for the whole month.

Adjusted for inflation in December 2005 dollars this $38 peak is the equivalent of paying $97.50 today. (Note: This number is constantly changing as we adjust for inflation at the current moment.)

http://www.inflationdata.com/inflation/Inflation_Rate/Historical_Oil_Prices_Chart.asp

I think it's just more PR trickery from our corporate masters, like when the coal companies tell us that use is up while pollution is down.

[Roland99]

10. Well considering the average price of gas nationwide is now at least $2.80

I'd say we've met or topped the early 80s.