Trump is the reason they are high now. People forget that in the early days of the pandemic, gas prices were going down because demand dropped during the lockdowns. Trump said low gas prices were bad for America and lobbied to slow production, then congratulated himself for raising prices. Except for the winter dip in prices we always see, prices have risen steadily since then. Biden is already calling on oil companies to go back to normal production, but so far that’s one Trump mistake he hasn’t been able to undo.
2020 YEAR IN REVIEW: A LOOK BACK AT A HISTORICAL YEAR FOR GAS PRICES
The 70’s, 80’s, and 00’s had their share of volatile gas price fluctuations. But this year provided a series of unprecedented events that deeply impacted what we saw at the pumps. Gas prices decreased more than 33% from their highest point in January to April. It rebounded, but was still nearly 50 cents lower from when they were at their highest.
Here are the six big gas price moments in 2020.
COVID-19 DISRUPTS GAS PRICES
We saw gas prices being affected by the coronavirus
as early as February, with prices fluctuating due to the uncertainty of COVID-19 in China.
March saw the full impact of COVID-19. Much of the United States went into a complete lockdown, causing gas prices to fall from $2.41/gal on March 1 to $1.97/gal on March 31, 2020. No one drove to work. No one drove to school. A truly unprecedented drop in gasoline demand occurred for the first time in our nation’s history.
SAUDI ARABIA AND RUSSIA GO TO (OIL PRICE) WAR
At the same time COVID-19 became prominent in the US, Saudi Arabia and Russia had an oil price war. Saudi Arabia
initiated a price war in response to Russia’s refusal to reduce oil production in order to keep oil prices at moderate levels. The conflict resulted in a drop of oil prices over the spring of 2020 and contributed to the decline in gas prices.
We explained exactly
why gas prices were being impacted by the coronavirus and the oil price war, and even saw some gas stations sell 99c/gal gas for the first time since 2002.
OIL FUTURES FELL TO -$40 A BARREL
The depressed travel demand from the COVID-19 pandemic and the continuation of the oil price war impacted the entire energy industry. Oil futures were impacted so much that they
went into the negatives for the first time on April 20. Gas prices reached a year-low of $1.74/gal on April 28.
Even as gas prices continued to fall in April, we learned
how to not overpay for gas when prices are volatile, a common mistake for many drivers.
THE SUMMER OF THE ROAD TRIP
Road trips became the go-to for vacations as many feared hopping on a plane. The month of May saw the start of the summer driving season with the
lowest Memorial Day gas prices since 2003 ($1.95/gal).
Fuel demand also rebounded 22% in May compared to the lowest week in April as states reopened from previous coronavirus restrictions.
The summer continued to see prices rise, increasing by 20 cents from $1.98/gal on June 1 to $2.19/gal on July 31.
THE MOST ACTIVE HURRICANE SEASON ON RECORD
We saw the start of one of the most active hurricane seasons on record with 30 named storms going all the way to Hurricane Iota, which
caused us to activate our fuel availability tracker ahead of Hurricane Laura at the end of the month. Lucky for us, none of the major hurricanes impacted refineries in the Gulf. AKA: we did not see notable increases in gas prices. Gas prices remained “frozen” at $2.20/gal.
GAS PRICES TAKE CENTER STAGE DURING THE 2020 PRESIDENTIAL ELECTION
President Trump and President-elect Joe Biden had a nearly 12-minute discussion on their different stances on America’s energy resources during a presidential debate, putting further emphasis on the fact that which candidate voters elected would have great implications for how much drivers pay at the pumps.
We explored
how gas prices may be affected by the next presidential administration.
GAS PRICES 2021: YEAR IN REVIEW
If there is one word to describe the turmoil gas prices put us through this year, it’s ROLLERCOASTER. From a low national average of under $2.25 per gallon at the start of the year, to the highest Christmas gas prices ever recorded, it’s safe to say that 2021 brought unexpected, and unwanted, surprises to drivers at the pump.
From the Colonial Pipeline cyber attack to rumors of truck driver shortages to record-breaking prices at the pump, 2021 has wreaked havoc on many Americans’ wallets. Let’s take a look back at some of the craziest gas price events this year.
MARCH – FOR THE FIRST TIME, PRICES BEGIN TO RISE
In late February and March, drivers began to see the end of low, pandemic-induced gas prices. Things started to heat up as cold weather limited refinery capacity and OPEC kept production cuts despite rising gasoline demand.
MAY – COLONIAL PIPELINE CYBER ATTACK
On May 7, 2021, the Colonial Pipeline was the victim of a cyber attack. The pipeline originates in Houston, Texas and carries gasoline supply to much of the Southeastern United States. With the pipeline offline, many drivers faced gas shortages, unable to fill their tanks. GasBuddy activated its Fuel Availability Tracker to help drivers find gas in an emergency. Read more about it here.
MAY – GAS PRICES RISE OVER $3/GAL – FIRST TIME SINCE 2014
In the midst of the pipeline cyber attack, the national average price of a gallon of gas in the United States rose to over $3 per gallon for the first time since 2014. This hadn’t been seen since David Letterman still hosted Late Night, Pharrell’s hat was introduced to the world, and Kim and Kanye got hitched. Many factors contributed to rising gas prices, but the main contributor was increased demand – the beginning of summer travel season. The nation had begun to recover from Covid-19, and drivers were determined to get back out on the roads.
AUGUST – HURRICANE IDA SLAMS LOUISIANA
Just as things began to settle down, Hurricane Ida set its sights on the coast of Louisiana. Many in New Orleans, Baton Rouge, Lafayette and other cities were without gasoline for weeks on end. The GasBuddy Fuel Availability Tracker again helped communities find gasoline in order to be able to evacuate and power their homes.
OCTOBER – SAN FRANCISCO SETS NEW RECORD GAS PRICE FOR THE US
In late October, as many Americans were feeling the impacts of seasonally high gas prices, San Francisco set a new all time record for the highest gas price in the United States, at $4.75 per gallon. The previous record was set 3,300 days prior, at $4.73 per gallon in 2012. While California gas prices are typically above average, this milestone was indicative of the unusual gas price hikes that dominated 2021.
NOVEMBER – THANKSGIVING GAS PRICES NEAR HIGHEST EVER
As more drivers hit the road for Thanksgiving weekend this year, some decided to slam on the brakes due to high gas prices. A GasBuddy survey revealed that even LESS Americans were planning on driving this year than in 2020’s pandemic lockdowns. Those who did hit the road faced some of the highest gas prices on the holiday ever.
DECEMBER – HIGHEST GAS PRICE ON CHRISTMAS DAY EVER RECORDED
To round out the year, 2021 set a new record for the highest gas price ever recorded on Christmas Day. By about two-tenths of a penny, at $3.26 per gallon, the national average on Christmas Day surpassed the previous record set in 2013.