We’ve been thinking about gas prices and were curious to see how they’ve risen over the past 50 years. So, we started researching. We found an article on www.energytrendinsider.com that we thought explained the past half centuries’ gas prices famously. We all know from experience that of late, gas prices have pretty much been spiraling through the roof. But, the key factor that we’re not really taking into account when we say things like “but the gas prices were a quarter a gallon in 1940” is inflation.
According to the article, “if you look at a raw chart of the price of gas and how much it has gone up since 1919, it does indeed look scary. You can see a low of $0.17/gallon in 1931 rise all the way up to $3.53/gallon in 2011. But when the prices are adjusted for inflation, a much more balanced picture takes shape – although the spikes and drops are drastic. When taking inflation into account, average annual gas prices (in 2012 U.S. Dollars) were $3.35/gallon in 1919, $3.20/gallon in 1934, $3.44 in 1980, $2.49/gallon in 2009, $2.90/gallon in 2010, and $3.57/gallon in 2011. So it’s not like we’ve never seen this level of prices before.”
So, while the high gas prices are definitely a major concern and a definite reason for minor freak-outs, we can see that when taking inflation into account, the price of gas seems pretty much on point to what it has always been.
No matter where you’re driving to or how much gas prices end up at, if you’re behind the wheel, make sure that you’re insured. For a free quote from SafeAuto Insurance, visit our website at www.safeauto.com.