In 2024, U.S. retail gasoline prices averaged about 20 cents less than in 2023
Note: Retail price is for all formulations of regular grade gasoline.
The U.S. retail price for regular grade gasoline averaged $3.30 per gallon (gal) in 2024, $0.21/gal less than in 2023. Lower crude oil prices and narrower refinery margins in 2024 than in 2023 both contributed to the decrease in U.S. retail gasoline prices, according to data from our Gasoline and Diesel Fuel Update. From the first week of 2024 through the last week, national average weekly gasoline prices decreased $0.08/gal.
The retail gasoline price was highest in 2024 during late April when it reached $3.67/gal, below last year’s high price of $3.88/gal in September 2023. The high preceded the summer driving season, when gasoline use peaks in the United States and which often sets the highest prices of the year. However, peak prices before the summer season this year reflected relatively lower prices for gasoline and other petroleum products through the second half of 2024. Retail gasoline prices decreased to an annual low of $3.01/gal in early December and remained at a similar level through the rest of 2024. The price range in 2024 was narrower than in 2023, reflecting relatively flat crude oil prices.
U.S. gasoline retail prices decreased for the second consecutive year in 2024. Gasoline prices and prices for crude oil and other petroleum products had increased sharply in 2022, when U.S. gasoline prices were at their highest since 2014, after adjusting for inflation.
Global crude oil prices are the largest component of U.S. gasoline prices, and lower crude oil prices in 2024 reduced U.S. gasoline prices. Weaker U.S. gasoline demand during the summer of 2024 than in 2023 helped to build inventories throughout much of the United States. Over the first half of 2024, U.S. gasoline prices averaged 2%, or $0.08/gal, lower than in the first half of 2023, but in the second half of 2024, prices averaged 10%, or $0.34/gal, lower than in the second half of 2023. Ahead of Memorial Day, at the start of the summer season, U.S. gasoline prices were higher than in 2023; however, prices were lower at the end of summer, ahead of Labor Day, and fell to their lowest since 2020 by Thanksgiving.
U.S. gasoline prices vary regionally, reflecting local supply and demand conditions and differences in state fuel specifications and taxes. The annual average retail price for regular grade gasoline in 2024 ranged from a low of $2.89/gal on the U.S. Gulf Coast to a high of $4.18/gal on the West Coast.
Note: Retail prices are for all formulations of regular grade gasoline and are in nominal terms, not adjusted for inflation.
U.S. gasoline prices were lower on average in 2024 than in 2023 in all regions, with the largest decrease in the Rocky Mountains, where prices were $0.42/gal lower. The next largest decrease was on the West Coast, where prices were $0.33/gal lower than in 2023.
Principal contributor: Kevin Hack