Has Gas Ever Been This Expensive? A Look Back at the 70s, 2008, and 2022
A Look at the History of Gas Prices in the United States
Gas prices have always been a topic of concern for American drivers. With current prices hitting new highs, many are wondering if we’re seeing the most expensive gas ever. To understand the situation better, it’s helpful to look back at some of the major energy crises that have shaped the U.S. gas market.
1970s: OPEC Oil Embargo and 1979 Iranian Revolution
The 1970s were a turbulent time for oil and gas. The OPEC embargo and the Iranian Revolution led to significant price increases. In 1971, the average price of gas was $0.36 per gallon, which is equivalent to about $2.96 in 2026 dollars. By 1981, the price had nearly quadrupled to $1.38 per gallon, or $5.18 in today’s money.
Today, California is paying over $5.81 per gallon, but the national average of $3.98 is still lower than the 1981 inflation-adjusted price. Back then, supply issues were also a problem, with gas pumps running dry. Fortunately, this is not an issue in 2026.
1990s: First Gulf War
The Gulf War in the early 1990s caused a short but significant spike in gas prices. At its peak, a gallon of gas reached $1.35 in 1990, which is about $3.30 in today’s dollars. This is roughly 68 cents cheaper than the March 2026 national average.
2008: Recession
The 2008-2009 recession was a volatile period for gas prices. The price shot up to a record $4.05 per gallon in July 2008, which would be about $6.02 in today’s money. However, by December, the price had dropped to $1.64 per gallon, equivalent to about $2.55 in today’s dollars.
Although prices fell initially, they gradually rose again, reaching near $4 per gallon in 2011.
2022: Inflation and the Russian Invasion of Ukraine
In 2022, inflation was already on the rise when Russia invaded Ukraine. This led to global supply constraints and higher gas prices. According to AAA, gas prices hit an all-time high of $5.01 per gallon in June 2022, which is about $5.53 in today’s dollars.
Today: How High Will Gas Prices Get?
Currently, the national average is $3.98 per gallon, which is more than a dollar away from the 2022 record. However, prices are rising quickly. A month ago, before the conflict with Iran, gas was $2.92 per gallon.
Even if the conflict in the Middle East ends today, it will take time for gas prices to recover from the damage done to infrastructure. After Israel attacked Iran’s South Pars natural gas field last week, Iran retaliated by damaging Qatar’s massive natural gas export facility. QatarGas reported “extensive” damage that will take years to repair.
Government Efforts to Control Prices
The U.S. government is taking steps to prevent gas prices from rising further. The Environmental Protection Agency announced it would temporarily allow widespread sales of E15, a higher ethanol gas blend, to help reduce consumer prices. However, this move is not available in all states, and some areas lack the necessary infrastructure or ethanol supply to make a significant impact.
Kenneth Gillingham, a professor at the Yale School of the Environment, notes that while the move may help, it might not substantially lower gas prices. He points out that E15 isn’t available everywhere and that some regions don’t have the infrastructure to support increased use.
As the situation continues to evolve, it remains to be seen how much gas prices will rise in the coming months. For now, drivers are facing some of the highest prices in recent history.
