Gasoline Price Changes - Federal Trade Commission
Gasoline Price Changes - Federal Trade Commission
Gasoline Price Changes - Federal Trade Commission
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Year-over-year Percentage Change in <strong>Price</strong><br />
80%<br />
60%<br />
40%<br />
20%<br />
0%<br />
-20%<br />
-40%<br />
-60%<br />
Source: EIA, BEA<br />
1979<br />
1980<br />
1981<br />
1982<br />
1983<br />
1984<br />
1985<br />
1986<br />
1987<br />
1988<br />
1989<br />
1990<br />
THE DYNAMIC OF SUPPLY, DEMAND, AND COMPETITION<br />
Figure 3-5: Yearly Real <strong>Price</strong> <strong>Changes</strong> for Crude Oil and <strong>Gasoline</strong>, 1979 to 2004<br />
(2004 Dollars)<br />
E. <strong>Price</strong> Trends for 2005.<br />
% Change Real (2004 Dollars) Wellhead Crude Oil <strong>Price</strong>s<br />
% Change Real (2004 Dollars) <strong>Gasoline</strong> <strong>Price</strong>s Excluding Taxes<br />
1991<br />
1992<br />
1993<br />
1994<br />
1995<br />
1996<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
With the beginning of 2005, average retail gasoline prices were increasing relative to<br />
2004 levels. The average retail price of gasoline (including taxes) was $2.04 per gallon during<br />
the first 5 months. 24 This is higher than the first five months of 2004 when the average retail<br />
gasoline price (including taxes) was $1.75. 25 While it is impossible to predict the future, to date,<br />
2005 average retail gasoline prices continue to be significantly higher than over the past 20<br />
years. Additionally, current crude oil futures contracts for delivery through 2010 are over $57<br />
per barrel, 26 indicating that retail gasoline prices may continue to be higher than over the past 20<br />
years.<br />
In sum, the data in Section III show that, for the period from 1985 through 2003, real<br />
annual average retail gasoline prices in the U.S. are below those of the previous 40 years and fell<br />
below the prior year’s prices as often as they rose above them. It is difficult to predict whether<br />
U.S. real annual average retail gasoline prices will rise or fall in the future, but the information<br />
for 2004 and early 2005 shows higher retail gasoline prices relative to the last 20 years.<br />
CHAPTER 3: THE NATIONAL LEVEL 47
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