Gas prices were essentially flat this week, remaining near their lowest levels in six weeks. As of May 5th, the price of regular was up 1 cent while premium gas was unchanged from the previous week. According to GasBuddy.com, California has the highest average price for regular at $4.72 and Mississippi has the cheapest at $2.62.
Currently, the national average price for a gallon of regular gasoline stands at $3.15 with premium gasoline averaging $4.07 per gallon. One year ago, regular gas was priced at $3.64 per gallon, while premium gas was at $4.55 per gallon.
Gas Prices: 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. 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).
West Texas Intermediate Oil
This next chart shows the West Texas light crude oil price over the past 8 months. As of May 5th, WTIC end-of-day spot price for crude oil closed at $57.23, down 7.8% from the previous week and its lowest level since February 2021.
The next chart is a monthly chart overlay of West Texas light crude, Brent crude, and unleaded gasoline end-of-day spot prices.
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).
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