re: Gas prices - lowest in 22 years

To calculate the average gas price over the last 20 years (2005–2024) adjusted for inflation, we need to adjust each year’s nominal average gas price to a common year’s dollars (typically 2024 dollars for consistency) using the Consumer Price Index (CPI) or another inflation metric. Then, we average those adjusted prices.

### Step 1: Nominal Gas Prices (2005–2024)

From reliable data (U.S. Energy Information Administration, AAA, and posts on X), the nominal average retail prices per gallon of regular unleaded gasoline are:

- 2005: $2.49
- 2006: $2.83
- 2007: $3.05
- 2008: $3.52
- 2009: $2.68
- 2010: $3.11
- 2011: $3.85
- 2012: $4.09
- 2013: $3.95
- 2014: $3.79
- 2015: $3.28
- 2016: $2.80
- 2017: $3.06
- 2018: $3.51
- 2019: $3.58
- 2020: $3.04
- 2021: $3.98
- 2022: $5.28
- 2023: $4.78
- 2024: $3.30

### Step 2: Inflation Adjustment

To adjust for inflation, we use the CPI for All Urban Consumers (CPI-U) from the Bureau of Labor Statistics (BLS). The CPI values for each year (annual average, base year 1982–1984 = 100) are:

- 2005: 195.3
- 2006: 201.6
- 2007: 207.3
- 2008: 215.3
- 2009: 214.5
- 2010: 218.1
- 2011: 224.9
- 2012: 229.6
- 2013: 233.0
- 2014: 236.7
- 2015: 237.0
- 2016: 240.0
- 2017: 245.1
- 2018: 251.1
- 2019: 255.7
- 2020: 258.8
- 2021: 270.9
- 2022: 292.7
- 2023: 304.7
- 2024: 313.2 (estimated, based on available 2024 data)

To adjust each year’s gas price to 2024 dollars, we use the formula:

[
\text{Adjusted Price} = \text{Nominal Price} \times \left(\frac{\text{CPI}*{2024}}{\text{CPI}*{\text{Year}}}\right)
]

Using CPI for 2024 as 313.2, we calculate the adjusted prices:

- **2005**: $2.49 × (313.2 / 195.3) = $2.49 × 1.6037 = $3.99
- **2006**: $2.83 × (313.2 / 201.6) = $2.83 × 1.5536 = $4.40
- **2007**: $3.05 × (313.2 / 207.3) = $3.05 × 1.5109 = $4.61
- **2008**: $3.52 × (313.2 / 215.3) = $3.52 × 1.4542 = $5.12
- **2009**: $2.68 × (313.2 / 214.5) = $2.68 × 1.4601 = $3.91
- **2010**: $3.11 × (313.2 / 218.1) = $3.11 × 1.4358 = $4.47
- **2011**: $3.85 × (313.2 / 224.9) = $3.85 × 1.3926 = $5.36
- **2012**: $4.09 × (313.2 / 229.6) = $4.09 × 1.3638 = $5.58
- **2013**: $3.95 × (313.2 / 233.0) = $3.95 × 1.3442 = $5.31
- **2014**: $3.79 × (313.2 / 236.7) = $3.79 × 1.3226 = $5.01
- **2015**: $3.28 × (313.2 / 237.0) = $3.28 × 1.3215 = $4.33
- **2016**: $2.80 × (313.2 / 240.0) = $2.80 × 1.3050 = $3.65
- **2017**: $3.06 × (313.2 / 245.1) = $3.06 × 1.2778 = $3.91
- **2018**: $3.51 × (313.2 / 251.1) = $3.51 × 1.2473 = $4.38
- **2019**: $3.58 × (313.2 / 255.7) = $3.58 × 1.2249 = $4.39
- **2020**: $3.04 × (313.2 / 258.8) = $3.04 × 1.2102 = $3.68
- **2021**: $3.98 × (313.2 / 270.9) = $3.98 × 1.1561 = $4.60
- **2022**: $5.28 × (313.2 / 292.7) = $5.28 × 1.0700 = $5.65
- **2023**: $4.78 × (313.2 / 304.7) = $4.78 × 1.0279 = $4.91
- **2024**: $3.30 × (313.2 / 313.2) = $3.30 × 1.0000 = $3.30

### Step 3: Calculate the Average

Sum the adjusted prices:

[
3.99 + 4.40 + 4.61 + 5.12 + 3.91 + 4.47 + 5.36 + 5.58 + 5.31 + 5.01 + 4.33 + 3.65 + 3.91 + 4.38 + 4.39 + 3.68 + 4.60 + 5.65 + 4.91 + 3.30 = 92.59
]

Divide by 20 years:

[
92.59 / 20 = 4.6295
]

The average gas price from 2005 to 2024, adjusted to 2024 dollars, is approximately **$4.63 per gallon**.

### Key Observations:

- **Highest Adjusted Price**: 2012 at $5.58 per gallon (2024 dollars), reflecting high global demand and supply constraints.
- **Lowest Adjusted Price**: 2024 at $3.30 per gallon, due to stabilizing oil markets.
- **Trend**: Prices peaked in 2008 ($5.12) and 2011–2013 (over $5.00), dipped in 2016 ($3.65) and 2020 ($3.68) due to low oil prices, and surged in 2022 ($5.65) due to geopolitical events.
- **Comparison to Nominal**: The nominal average was $3.40 per gallon (unadjusted). Inflation adjustment raises this to $4.63, reflecting the diminished purchasing power of the dollar.

### Notes:

- CPI data for 2024 is estimated based on partial-year data; exact values may vary slightly.
- Regional variations exist (e.g., California’s adjusted prices are higher, ~$6.00 in 2024 dollars).
- Data aligns with sources like EIA, AAA, and @stats_feed on X.

I was in San Diego this weekend. Gas there was just under $5.00/gal. I don’t know how those people live with prices like that.

We should all be outraged that three dollar gas is now considered to be "cheap".

Filled up this morning and paid $2.54 at a Circle K using my CC, would have been less if I paid cash.

3.17 here in Montana

Went up 11 cents per gallon at the local Brookshires

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Still $3.20 a gallon here in northern Indiana. shite just sucks.

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I’ve seen the last two weeks $2.31-$2.62 in Louisiana.

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i don't think it's a win, just asking why they're not counting that year?

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The price was low.

So Trump keeps gas low during a pandemic but Biden can’t.

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Which part? Nwi here

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Granger. Its a white flight suburb of South Bend.