What’s the Highest Gas Price Ever In the US?

The highest gas price in the USA was on June 14, 2022, at $5.02. This was caused by the Russia-Ukraine war, which caused the European Union (EU) to look elsewhere for fuel, as it previously relied on Russia for 40% of its crude oil supply.

Aside from 2022, there have been several times in history where fuel prices have hit an all-time high. One of the most consequential was the 1981 oil crisis when the gas cost spiked to $1.35. When adjusted to inflation, that would amount to $2.42. The price of gas in 1981 was double the cost of gasoline three years prior. $2.42 might still sound relatively cheap compared to gas prices now, but this was a high price when gas prices used to be extremely inexpensive. The price of gasoline in 2008 was also quite high because of the global financial crisis, with gas prices costing $4.11.

What Factors Affect the Price of Gasoline?

If we’re to break down the cost of fuel at the pump, the cost of crude oil is the biggest factor that makes up the total cost. Then comes distribution, marketing, refining, and taxes. Crude oil price is affected by the global supply and demand for crude oil. When oil production exceeds demand, prices decrease. Conversely, when demand overtakes supply, prices rise. Other factors such as geopolitical tensions and the global economy can also affect oil prices.

US Gas Prices vs. the Rest of the World

Gasoline might seem at its most expensive now, but America is actually in the top quarter of countries with the cheapest gas in the world.

Oil-producing countries like Iran, Libya, Venezuela, and Egypt have the cheapest gasoline in the world at $0.11, $0.12, $0.13, and $1.06 per gallon, respectively. These countries have such affordable gasoline because they have a lot of supply and little demand. The fuel isn’t taxed, nor does it need to be transported from far away, since it’s domestically sourced.

Meanwhile, the countries with the most expensive gasoline in the world include Iceland, Denmark, Monaco, and Hong Kong, which price their fuel at $8.69, $8.73, $8.78, and $12.36, respectively.

These countries have expensive gasoline partially because they’re small nations that rely on expensive shipments for crude oil. Afterward, they’ll still need to have it refined.

Some countries like Denmark have high gasoline prices to move away from fossil fuel use and stem climate change, as adding taxes and raising gas prices is a way to disincentivize use.

Tips on Saving Money at the Pump

Oftentimes, driving is the only way to get to a destination. There are still several techniques that you can use to save fuel when you’re driving.

• Maintaining a steady speed, avoiding surging, and reducing idle times are great ways to conserve fuel.
• You can also remove unnecessary items and cargo from your vehicle to improve fuel efficiency.
• Ensuring your vehicle’s tires are inflated to their proper pressure can significantly reduce your vehicle’s rolling resistance and improve its fuel consumption.
• Combine errands and avoid rush hour traffic so that you’ll spend less time on the road.