U.S. Common Retail Gasoline Costs Have been 40 Cents A Gallon Decrease In 2023 Than 2022

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U.S. retail gasoline costs in 2023 averaged $0.43 per gallon (gal) lower than in 2022, in accordance with information from our Gasoline and Diesel Gas Replace. This decline was due, partly, to decrease crude oil costs in 2023 in contrast with 2022 and better gasoline inventories within the second half of 2023. In contrast with the final weekly common value snapshot of 2022, costs over the past week of 2023 have been about even, up solely $0.02/gal.

The U.S. retail value for regular-grade gasoline, the value customers pay on the pump, averaged $3.52/gal in 2023. The value hit its 2023 excessive of $3.88/gal in mid-September, effectively under the earlier yr’s excessive of $5.01/gal in June 2022. Costs decreased to $3.05/gal on the finish of 2023.

The decrease relative gasoline costs primarily mirror decrease crude oil costs in 2023 in contrast with 2022. Gasoline costs rose rapidly after Russia’s full-scale invasion of Ukraine in February 2022 and the ensuing uncertainty in markets for crude oil, pure fuel, and petroleum merchandise similar to gasoline. Annual common gasoline costs in 2022 have been the very best since 2014, when adjusted for inflation.

The greater gasoline costs in August and September 2023 have been attributable to extra relative demand for gasoline on the finish of the summer time driving season, mixed with decrease refinery manufacturing amid seasonal upkeep and low inventories. Gasoline inventories have been the identical as or decrease than these in 2022 for a lot of the first half of 2023. Costs dropped from $3.80/gal at the beginning of October, when refinery operations started to renew, to $3.40/gal at the beginning of November, an 11% lower ($0.40/gal).

U.S. gasoline costs differ regionally, reflecting native provide and demand circumstances and variations in state gas specs and taxes. The annual common retail value for regular-grade gasoline in 2023 ranged from a low of $3.09/gal on the U.S. Gulf Coast to a excessive of $4.51/gal on the West Coast. East Coast gasoline costs averaged $3.40/gal final yr. Midwest costs averaged $3.36/gal, the second lowest after the Gulf Coast, and Rocky Mountain costs averaged $3.60/gal. As with general costs, costs in every area decreased in contrast with 2022.

Principal contributor: Kevin Hack

Article first revealed on U.S. EIA web site.