Regan Brown
Gas prices have been a significant concern for consumers over the past few years, with prices soaring in 2021 and 2022 due to economic disruptions and global conflicts. While prices have dropped recently, it's interesting to look back and ask: how much was gas five years ago, in 2020? According to sources, the average price of diesel fuel in 2020 was $2.55, with regular gas prices remaining steady between $2.74 and $3.29 per gallon.
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What You'll Learn
Gas prices in 2020
The COVID-19 pandemic caused lower fuel demand, which impacted gas prices as early as February 2020, with prices fluctuating due to the uncertainty of COVID-19 in China. In March, much of the United States went into a complete lockdown, causing gas prices to fall from $2.41 per gallon on March 1 to $1.97 per gallon on March 31.
During the same time, Saudi Arabia and Russia were engaged in an oil price war, with Saudi Arabia initiating the conflict in response to Russia's refusal to reduce oil production. This resulted in a drop in oil prices over the spring of 2020 and contributed to the overall decline in gas prices.
Gas prices continued to fall in April, reaching a year-low of $1.74 per gallon on April 28. May saw the start of the summer driving season with the lowest Memorial Day gas prices since 2003 at $1.95 per gallon. Fuel demand also rebounded by 22% in May compared to April as states began to reopen.
Prices began to rise in the summer, increasing by 20 cents from $1.98 per gallon on June 1 to $2.19 per gallon on July 31. The active hurricane season did not significantly impact refineries in the Gulf, and gas prices remained relatively stable.
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The impact of the pandemic
Five years ago, in 2018, the price of gas was between $2.74 and $3.29 per gallon. This was before the pandemic, which caused significant disruptions to the economy and energy markets.
The COVID-19 pandemic had a notable impact on gas prices, with a combination of factors causing fluctuations. During the lockdown, demand for oil collapsed as people commuted less due to work-from-home policies. This was exacerbated by a lack of oil storage capacity, leading to a historic drop in the front-month oil contract. The negative price meant that contract holders were willing to pay others to take their contracts.
However, as the economy started to recover, energy demand increased, and gas prices rose. The pandemic-related supply shocks, coupled with geopolitical events like Russia's invasion of Ukraine, hit the energy markets hard. Gas prices surged in 2021 and 2022, and despite a slight decrease in 2023, they never fully recovered to pre-pandemic levels.
The pandemic's impact on gas prices contributed to rising inflation, with gasoline prices becoming a symbol of the financial burden on consumers. The energy sector benefited from higher prices, but investors faced challenges due to overall market adjustments and rising inflation.
The contrast between reduced commuting and increased recreational travel during the pandemic also complicated predictions of gasoline demand. Refinery capacity and maintenance issues further influenced gas prices.
Overall, the pandemic, along with other factors, significantly affected the energy markets and resulted in notable shifts in gas prices, impacting consumers, investors, and the broader economy.
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Gas prices by state
Five years ago, in 2018, the price of gasoline in the US was around $2.45 per gallon, though prices varied across states.
Gas prices vary across the US, with prices depending on state and local taxes, proximity to supply sources, and the costs of doing business in different locations. While I cannot provide data for each individual state, here is an overview of some states with relatively high and low gas prices:
States with High Gas Prices
- California: California typically has some of the highest gas prices in the US due to high state taxes and environmental standards for fuel blends.
- New York: Gas prices in New York are often among the highest in the nation, again due to high state taxes and standards for fuel blends.
- Hawaii: As an island state, Hawaii incurs additional transportation costs for fuel delivery, which are passed on to consumers.
States with Low Gas Prices
- Texas: Texas often benefits from relatively low gas prices due to its proximity to oil refineries and its low state gas tax.
- Arizona: Arizona typically has lower gas prices, partly due to its competitive fuel market and relatively low state gas tax.
- Virginia: Virginia generally has lower gas prices, which may be attributed to its relatively low state gas tax and efficient fuel distribution network.
It is worth noting that gas prices fluctuate daily and can vary significantly over time due to various economic, political, and supply-and-demand factors. Therefore, while these states tend to have higher or lower gas prices, the specific rankings can shift.
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Summer gas prices
In the summer of 2022, the average price of gas in the US was $3.95 per gallon. This was a particularly expensive year for gas, with 2022 seeing 10 of the most expensive national average prices since 2018. This was partly due to the conflict between Russia and Ukraine, which resulted in economic sanctions that contributed to crude oil and petrol price inflation.
In 2021, the average price of gas in the US was $3.06 per gallon. This was lower than the average price in 2019, which was $3.62 per gallon.
To put these prices into context, the last time the average price of gas was less than $2 was 15 years ago, in 2004, when it was $1.88 per gallon. The average price of gas in the 1990s was just under $1.15 per gallon.
Looking at a longer time frame, gas prices in the US have generally been increasing since 2016, when they hit a record low of $2.14 per gallon due to plummeting crude oil prices.
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Global comparison
In the United States, the average price of gas over the last five years has been between $2.74 and $3.29 per gallon. The price of gas is largely based on supply and demand, with prices tending to be lower during the winter months when demand is lower, and higher during the spring and summer months when demand is higher. The federal gas tax in the US is 18.4 cents per gallon and has remained unchanged for the last 29 years.
In Canada, gas prices are reported in US or Canadian dollars and can be compared to crude oil pricing.
In the United Kingdom, regular-grade gasoline is usually made from UK Brent. Between 2014 and 2016, the price of crude oil fell by more than 50%, and prices began to rebound in 2017.
Unfortunately, I cannot provide information on gas prices from exactly five years ago for other countries. However, it is worth noting that gas prices are influenced by various factors such as supply and demand, seasonal variations, and economic sanctions, which can impact the global market.
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Frequently asked questions
In 2020, the average price of gas in the US was $2.55 per gallon.
In July 2025, the average price of gas in the US was $3.50 per gallon. Therefore, gas prices are currently higher than they were 5 years ago.
The price of gas is largely based on supply and demand. For example, gas costs less during the winter months when there are fewer drivers on the road.
In May 2025, the US had an average gas price of $3.50 per gallon. This is much cheaper than Hong Kong, with prices at $13.01 per gallon, but more expensive than many countries in the Middle East, where prices are at the bottom of the scale.
Wyoming currently has the cheapest gas prices in the US.
