Frequently Asked Questions
What's up (and down) with gasoline prices?
EIA analysis of the petroleum market points to the price of crude oil as the main contributor to the large changes in gasoline prices the U.S. has experienced in recent years. Crude oil prices are greatly affected by levels of supply relative to actual and expected demand for the petroleum products made from crude oil.
Strong world-wide demand growth for petroleum in the mid-2000s was a major reason for the record high prices for crude oil and gasoline in mid-2008. Then the on-set of the U.S. and world economic recession in 2008 led to a sharp drop in demand and prices. The gradual improvement in the U.S. and world economies starting in 2010 and the political events in the Middle East and North Africa in 2011 contributed to the gradual increase and spikes in crude oil and gasoline prices in 2011. Hurricanes in the Gulf of Mexico and floods in the Midwest that shut down U.S. crude oil production and negatively affected refinery and pipeline operations also caused price spikes several times during the mid and late 2000s.
Crude oil and gasoline prices fluctuated but declined overall from May to December 2011 as supply issues eased and petroleum demand followed fluctuations in the pace of recovery from the world and U.S. economic recession. The seasonal switch from summer gasoline blends to lower cost winter blends along with reduced gasoline demand also contributed to the general decline in prices in October to December 2011.
Oil prices fluctuated widely during 2012, reflecting concerns and expectations for world oil supply, economic conditions, and petroleum demand. Prices climbed from January to March, as turmoil in South Sudan, Yemen, and Syria caused a tightening of world oil supply. Prices then declined through June, as supply conditions eased on increases in OPEC and U.S. oil production, and from lower expectations for petroleum demand in the U.S. and Europe. Prices began to rise again due to seasonal increases in petroleum demand, and from expectations of economic stimulus measures in China, Europe, the U.S. and concerns about oil supply disruptions in the Persian Gulf.
Gasoline and oil prices are often topics in EIA's This Week In Petroleum. Recent past editions that discuss oil and gasoline prices include the August 29, 22, and 15, May 9, and March 7 editions in 2012. The January 5, 2012 edition provides an overview of major events that affected petroleum markets in 2011.
Additional analysis of gasoline prices include the following Today in Energy articles:
- Crude oil prices peaked early in 2012
- Drop in U.S. retail gasoline prices reflects decline in crude oil costs
- Regional differences for cost of crude oil to refiners widened in 2011
- Retail gasoline prices in the Rocky Mountains fall as U.S. average prices rise
- U.S. average gasoline and diesel prices over $3 per gallon throughout 2011
- Recent gasoline and diesel prices track Brent and LLS, not WTI
For EIA's latest gasoline price projections, see EIA's Short-Term Energy Outlook and the Market Prices and Uncertainty Report.
Learn more:
The Availability and Price of Petroleum and Petroleum Products Produced in Countries Other Than Iran
Last updated: September 6, 2012
Other FAQs about Prices
- Are the prices that EIA publishes adjusted for inflation?
- Does EIA have city or county-level energy consumption and price data?
- Does EIA have gasoline prices by city, county, or zip code?
- Does EIA publish electric utility rate, tariff, and demand charge data?
- How do I calculate/find diesel fuel surcharges?
- How do I compare heating fuels?
- How much does it cost to generate electricity with different types of power plants?
- How much does it cost to produce crude oil and natural gas?
- How much tax do we pay on a gallon of gasoline and diesel fuel?
- What are the differences between various types of crude oil prices?
- What are the different types of coal prices published by EIA?
- What do I pay for in a gallon of regular gasoline?
- What is the outlook for gasoline prices for 2012 and for 2013?
- What is the outlook for home heating fuel prices this winter?
- What was the highest U.S. average retail price of regular gasoline?
- What's up (and down) with gasoline prices?
- Where can I find coking coal prices?
- Where can I find ethanol prices?
- Where can I find inflation-adjusted gasoline prices?
- Where can I find out about energy-related grants or tax credits for my home or business?
- Where can I find prices for off-road diesel fuel?
- Where can I get help paying my utility bills?
- Who do I contact to complain about high energy prices?
- Why am I being charged more for propane than the price on EIA's website?
- Why don't fuel prices change as quickly as crude oil prices?
- Why has diesel fuel been more expensive than gasoline?
- Why is the United States exporting gasoline when prices are so high?