Gas prices inched down for a second straight week but remain elevated. As of October 2, the price of regular fell by 4 cents while the price of premium gas was unchanged from the previous week. According to GasBuddy.com, California has the highest average price for regular at $6.00 and Mississippi has the cheapest at $3.18.
Currently, the national average price for a gallon of regular gasoline stands at $3.80, with premium gasoline averaging $4.76 per gallon. One year ago, regular gas was priced at $3.78 per gallon, while premium gas was at $4.72 per gallon.
The next chart is a monthly chart overlay of West Texas light crude, Brent crude, and unleaded gasoline end-of-day spot prices.
In this year-to-date chart, the WTIC end-of-day spot price for crude oil closed at $88.82, down 1.0% from last week.
Inflation-Adjusted Reality
The volatility in crude oil and gasoline prices has been clearly reflected in recent years in both the consumer price index (CPI) and personal consumption expenditures (PCE). For additional perspective on how energy prices are factored into the CPI, see Inside the Consumer Price Index.
The chart below offers a comparison of the broader aggregate category of energy inflation since 2000, based on categories within the CPI (commentary here).
In this next chart, we take a look at the same gasoline prices shown in the first chart but adjust for inflation using the CPI.
For an easier way to visualize the effects of inflation, this next chart overlays the nominal price with the real price for each type of gasoline (regular and premium).
ETFs associated with gasoline WTIC crude oil, and Brent crude oil include: United States Gasoline Fund LP (UGA), United States Oil Fund LP (USO), United States Brent Oil Fund LP (BNO), and Invesco DB Oil Fund (DBO).
This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at VettaFi | Advisor Perspectives
Here are some additional commentaries related to gasoline prices:
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