9 Times in History When Gas Prices Spiked to Crazy High Levels
Gas prices are a foe for many American consumers. Though they occasionally drop to manageable levels, they seem to be heading in the wrong (higher) direction most of the time.
The strife Americans feel every time they pull up to the pump is nothing new. Gas prices have had peaks and valleys since World War II, and, as this list reveals, they’ve disrupted Americans’ lives many times.
Sadly, when it comes to gas prices, U.S. consumers are far from being equal. Where you live, the time of year, and what you drive all have a massive effect on the price you end up paying. Luckily, there are ways to save, even if you live in the most expensive state.
1: Post War Inflation
When World War II ended, Americans rushed to spend money, flooding the economy with pent-up demand. As that demand tapered off and the global supply chain recovered from the war, there was a brief but sharp inflationary period.
At that point, Americans saw the first major gasoline price hike. At the war’s end, the price of gasoline averaged $0.21 per gallon. By 1947, it was up to $0.23; by 1948 it hit $0.26.
While two to four cents seems minuscule by today’s standards, it represented a massive increase at the time, especially given that gasoline prices had been exceptionally stable up until that point.
2: 1970s Energy Crisis
From 1970 to 1981, gas prices nearly tripled, going from $0.36 per gallon to $1.31 per gallon on average. The massive increase was part of the 1970s energy crisis.
The crisis began in 1973 when OPEC punished the U.S. for supporting Israel during the Arab-Israeli war. They issued an embargo that banned petroleum exports to the U.S. and other nations that supported Israel, creating a shortage and subsequent inflation.
3: The Iranian Revolution
The 1970s energy crisis didn’t end when OPEC lifted the embargo in 1974. In 1979, the Iranian Revolution led to another gas shortage.
Civil unrest in Iran led to decreased oil production and exports, which left the U.S. high and dry. To add to the problem, the Iran-Iraq War broke out in 1980, making the market even more unstable. The cost of gas rose 23% between 1979 and 1980 alone.
4: The Persian Gulf War
The mid to late 1980s saw better fuel prices than the early 80s or 1970s, but gas price stability didn’t last long. In 1990, the Gulf War began.
During the Gulf War, Iraq invaded Kuwait, and many worried that oil supply from both countries would drop. This led to a sharp spike in gas prices. From 1989 to 1990, there was an 11% increase in the average cost per gallon.
5: Another Energy Crisis
In 2003, the U.S. experienced a spike in gas prices known as the 2000s energy crisis. The price increase wasn’t because of one specific factor but came from many different geopolitical concerns. Over the course of five years, gas would reach a high of $4.11 per gallon, which comes out to $5.40 in today’s dollars.
Commentators blamed the increasing prices on everything from Hurricane Katrina to North Korean missile tests. Economists now suggest the rising rates were due to demand shocks caused by the industrialization of developing countries.
6: Arab Spring
Between 2010 and 2011, gas prices jumped nearly 24 percent. At the time, there was widespread civil unrest throughout the Middle East.
Known as the Arab Spring or The First Arab Spring, this period contained a series of anti-government protests and rebellions that seemed to spread across Arab nations. As a result, governments in the area put more effort into calming their citizens and less towards producing oil. As oil production dropped, the price of gasoline spiked.
7: Cyberattack
Gas prices increased by more than $1 per gallon between the beginning and end of 2021. According to the U.S. Energy Information Association, retail gas prices were $2.25 per gallon at the start of the year and increased to $3.28 by November.
Most of the increase occurred in May 2021, directly after disruptions to the Colonial Pipeline operations. On May 7th, 2021, a cyberattack on the Colonial Pipeline stopped fuel delivery from the Gulf Coast to the East Coast. It took several days to restart the pipeline.
8: Russia Invades Ukraine
In February 2022, Russia invaded Ukraine. Even before the actual invasion, though, gas prices had begun to increase, probably due to speculation that Russia was about to invade. Starting in January 2022, U.S. consumers saw steady rises in the price they paid at the pump.
From the beginning of 2022 to early March, gas prices rose by 23%. As Jeff Sommer wrote for the New York Times, “It’s getting to the point where you’re better off filling up your gas tank in the morning because the price will be higher by the time you drive home.”
9: Spring 2024 Jump
Americans saw sharp increases in gas prices in the Spring of 2024. The year started with prices that averaged $3.19 per gallon. By mid-March, those prices were up to $3.54; by April, they were up to $3.73.
Though the price jump is roughly in line with typical seasonal fluctuations in gas prices, U.S. consumers may be more concerned about it than usual. Higher-than-anticipated inflation in February 2024 meant Americans experienced jumps in other costs like housing and groceries.
Depends on the Season
Gas prices always vary with the season, and in the past few years, it’s common for Americans to see a $0.39 jump between winter and summer months. Some of this is due to demand. U.S. consumers tend to drive more in the summer.
However, some of it is also because of different gasoline formulas. Environmental regulations require that gas sold in the summer be less prone to evaporation. Replacing cheap but evaporative components with more expensive alternatives leads to higher gas prices.
Where You Live Matters
Where you live has a significant effect on how much you pay at the pump. For example, in 2022, a gallon of gas averaged $3.85 on the East Coast but averaged $4.95 on the West Coast.
There are multiple reasons for the variance. In part, it’s due to the distance gasoline has to travel, but it’s also due to regional environmental programs and state taxes.
The Most Expensive State
The most expensive place to purchase gasoline is California. In 2022, an average gallon reached the sky-high price of $5.74.
California has the highest gasoline taxes in the nation. Regulations also require a specific, lower-pollution gasoline blend in the Golden State.
Where To Score the Cheapest Gas
The cheapest gas in the nation is currently in Colorado. In April 2024, the average cost for a gallon of gas in the Centennial State was $3.07.
Colorado is one of the few states to offer 85-octane gas. Most vehicle manufacturers recommend using 87 octane or higher, but it’s thought that at higher altitudes, like in Colorado, vehicle engines can run on lower octane fuels without issue.
Beating High Gas Prices
For those trying to beat the ever-rising price of gasoline, there are things you can do. Obviously, switching to an electric vehicle will save you the cost of gasoline. That said, not everyone can afford to jump on the e-vehicle bandwagon.
If you’re stuck with your gas guzzler, you might consider joining a fuel rewards program with a local supermarket chain. Many offer significant discounts on gasoline. Member stores, like Costco, also offer less expensive gas when you buy a membership.
Driving More Efficiently
Another way to combat high fuel prices is to learn to drive more efficiently. AAA compiled a list of tips for drivers who want to fill up less often.
According to their experts, drivers should always drive the speed limit or just below it, even on the freeway. Going over 50 mph tends to make your fuel economy tank.
Drivers should also try to accelerate smoothly rather than lurching forward. And, they should consider limiting A/C use if possible.
The Hypermiler Trend
Hypermiling is the practice of maximizing fuel efficiency, and hypermilers are known for averaging up to 100 miles per gallon in regular, non-hybrid vehicles. While their list of tips may not be practical for some drivers, there are a few things would-be fuel savers can learn.
Hypermilers say you should lower the weight in your vehicle by cleaning out your trunk, park facing the sun in cold weather so you don’t waste energy defrosting the windshield, and use the lowest-weight oil in your engine to maximize viscosity. They also note that drivers should learn not to accelerate when approaching a red light or stop sign.
Silver Lining
Though rising fuel prices are a bummer for many Americans, there is a silver lining to paying more at the pump. At least one study shows that more expensive gas means the roads stay safer.
In a 2015 study, researchers examined the effects of rising gas prices on crash data. They found a positive association between higher fuel rates and safer roads. According to them, an increase in gas prices leads to fewer crashes about nine months later as people adjust their lifestyles and drive less.
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