Thread: USA Gasoline Prices ..... Did you ever notice ......

When did gasoline cost the least in the USA relative to income?

The lowest price for gas relative to income (adjusted for inflation) was from 1986-2003.

Most people get this question wrong. Here is your economics lesson for the day. Some of us remember gas for less than $0.30/gallon. But this is the nominal curve. I thought you would find this graph interesting. If someone asks when gas prices were the cheapest you now have your answer. Of course, the current trend is most disturbing, but take heart. The strengthening dollar is caused by investors bailing from the Euro. You may expect gas prices to fall considerably over the next few weeks if not months. When the dollar is strong, then ALL imports cost less, including oil. However, a strong dollar hurts exports as the price of our goods offered to the rest of the world goes up. Oh well, I guess you cannot have your cake and eat it too.