Gas prices are influenced by many factors. Global conflicts, like ongoing wars, affect crude oil costs, which trickles down to what you pay at the pump. The number of active oil rigs in the U.S. also matters. When more rigs are running, oil supply increases, which can help lower prices. Weather plays a role, too. A mild winter means less demand for heating fuel, which can impact overall fuel costs.

What we pay at the pump has changed a lot over the years. Fuel started off at less than 20 cents a gallon. But inflation, oil shortages, and world events pushed them higher and higher. Let’s take a look at the average gas price per gallon for each decade and what shaped those costs. Note: these prices are going to sound “cheap” if you live on the coasts…especially in California.

1930s – $0.17 per gallon

The Great Depression hit hard, and with money tight, fewer people could afford cars. Less driving meant lower gas demand, keeping prices cheap. Gas stations also weren’t as common, and road trips were a luxury few could afford.

1940s – $0.19 per gallon

World War II had a huge impact on fuel prices. The government rationed gas, limiting how much people could buy. Price controls kept gas affordable, but shortages meant people had to make do with less. The war effort prioritized fuel for military use over civilian driving.

1950s – $0.27 per gallon

After the war, the economy boomed. More families could buy cars, and new highways encouraged road trips. Suburbs grew, and people started commuting to work instead of living near their jobs. With demand rising, prices edged up but remained manageable.

1960s – $0.31 per gallon

The interstate highway system expanded, making long-distance driving more common. Gas stations popped up across the country, and fuel was still relatively cheap. More Americans owned multiple cars, further increasing demand.

1970s – $0.59 per gallon

This decade saw a major gas crisis. The 1973 Arab oil embargo led to shortages, skyrocketing prices, and long lines at gas stations. The 1979 Iranian Revolution caused another price spike. For the first time, Americans had to think seriously about fuel efficiency. 

When the 1980s hit, average gas prices crossed $1 per gallon for the first time in U.S. history.

1980s – $1.19 per gallon

Gas prices remained unpredictable. The global oil market was unstable due to conflicts in the Middle East. Meanwhile, the U.S. economy went through recessions, which affected oil demand. Fuel-efficient cars became more popular.

1990s – $1.15 per gallon

This decade saw relative stability. Oil production improved, and there were fewer global conflicts affecting supply. Gas prices stayed fairly steady, allowing people to drive more without major concerns about fuel costs. SUVs grew in popularity as gas remained affordable.

2000s – $2.15 per gallon

Demand for oil surged, especially from China, pushing prices higher. The Iraq War also disrupted global oil supplies. In 2008, prices hit record highs before crashing during the financial crisis. By the end of the decade, gas was expensive compared to past years.

2010s – $2.80 per gallon

Fracking helped the U.S. produce more oil, reducing dependence on foreign suppliers. However, gas prices still fluctuated. High demand, environmental policies, and occasional conflicts kept costs rising.

2020s – $3.07 per gallon as of March 2025

The COVID-19 pandemic caused wild swings in gas prices. In early 2020, demand collapsed, and prices dropped. As the economy reopened, fuel costs soared, peaking at $3.95 a gallon on average in 2022. Supply chain problems and global conflicts kept gas expensive, but they’ve cooled slightly. Per finder.com, today the average gas price is around $3.07 per gallon.

Gas prices will always be unpredictable. Oil supply, global events, and economic conditions all affect what you pay at the pump.