Real Price of Gas Falls to Five-Year Lows

The cheapest gas in the country can be found in Kansas City for as low as $1.29 per gallon, and the national average retail price for gas is now down to $1.75 per gallon. Without the high-priced states of Alaska ($2.60) and Hawaii ($2.57), the national average for the other 48 states is down to $1.72 per gallon.

Using real gas prices from the EIA (in December 2008 dollars), the chart above (click to enlarge) shows how today's gas prices compare to past prices.

The last time real gas prices (national average) were as low as $1.83 per gallon was five years ago in December of 2003, and the last time real gas prices (national average) were as low as $1.29 per gallon (current Kansas City low price) was almost ten years ago in February of 1999 (see chart above).

Comments

[icandoitdon:]

i bet you consider that a "mustard seed" don't you mark?

2008 Dec 06 09:22 AM

[n1pfl:]

WHAT IS THE POINT OF THIS ARTICLE.

2008 Dec 06 09:35 AM

[Poor me:]

If you like history, its interesting. I think most people try to remember when the last time gas was this price. Thanks.

2008 Dec 06 10:51 AM

[cyclingscholar:]

Peak oil! Along with global warming, another left wing academic shibboleth dies a wonderful death.

cyclingscholar

2008 Dec 06 12:08 PM

[CJJ:]

I think anyone not attributing the severity of this downturn to the absoulte rampant and criminal speculation in the Oil markets earlier in 2008 are blind. For a real turnaround to come, oil prices need to be low until the turnaround comes and from there a slow price increase needs to occur. If oil goes from $40 to $200 in under a year, we'll be in the same place we're on our way to now.

cycling, I agree that these peak oil, global warming, etc are made up to scare people, just like people calling for the fall of the $ and people saying we in the US need to accept a drastically lower standard of living for no other reason than to pay for the last 20-30 years. Ridiculous.

I do think the government needs to fund a manhattan project to improve alternative energy that the United States can sell so we don't support the Gulf Nations where terrorism in the name of religion threatens all stability and safety. Also the US would be wise to develop Africa from poverty to improvement, however unlike the past, the US needs to call on the countries it helps to help us when we run into troubles like today.

2008 Dec 06 06:00 PM

[WayneS:]

Thank the refiners for subsidizing gasoline these past 9 months.
Gasoline should have been over $6 a gallon

2008 Dec 06 08:07 PM

[Perception:]

"Thank the refiners for subsidizing gasoline these past 9 months.
Gasoline should have been over $6 a gallon "

wut? look at the RBOB vs. crude price history. they were in lockstep, as they should be. refiners were by no means subsidizing gas prices.

2008 Dec 06 11:54 PM

[Eck:]

This chart makes me smile, now that crude and gasoline are closer to where they should be. I heard on Bloomberg news that countries like Venezuela and Iran couldn't make their budgets balance once oil dropped back below $100/bbl. So, how did they manage before? Let those who hate us DRINK their crude. Now we have to insure that prices stay low by conserving and really getting serious about developing alternative energy across the board.

2008 Dec 07 11:38 AM

[CLH:]

We dont need a gov. Manhatten project because we already had it in the 1940s. What we need is for the gov. to get off its hinder and permit the building of 100 plus nuclear plants. Nuclear power is the only power that can replace oil and the science has already been done.

Wind and sun were fine in the 1500s but not now. Can we go to mars with wind energy. Get real lefties!!!

2008 Dec 07 12:06 PM

[NOWHEREMAN:]

Nuclear Power will replace Coal not oil. It will not run your car unless its an all-electric.

Solar Sails will enable larger space vehicles to fly to Mars and return. Attachment of such sails will become feasible as the Space Station expands in size and capabilities.

Of course if you believe that someone will develop a Flux Capacitor, then yes, cold fusion might power a car eventually.

IMHO

2008 Dec 07 02:28 PM

[mc2406:]

His graph and article support my observation that gas pump prices must be low because I haven't seen one politician on television standing in front of an Exxon station railing against the oil companies!

2008 Dec 07 03:27 PM

[WayneS:]

On Dec 06 11:54 PM Perception wrote:


> wut? look at the RBOB vs. crude price history. they were in lockstep,
> as they should be. refiners were by no means subsidizing gas prices.


You are right, they weren't subsidizing gasoline, they were just selling it for less than it cost to make it, as reported by Valero and other refiners.
Oil doubled in price (actually the dollar went down) and gasoline went up 37%.

2008 Dec 11 09:30 AM