Gas Prices Not as High as Political Rhetoric Suggests When Adjusted for Inflation

Despite political rhetoric, gas prices have not skyrocketed when adjusted for inflation. Overall, gas is only marginally more expensive than the 1990s, the best time to buy gas.

Nominal gas prices over time look alarming, but when adjusted for inflation, the increase is less dramatic. There are peaks and valleys due to various factors.

Fuel efficiency has improved since the 1970s, so we get more miles per gallon now. By miles driven, gas costs about the same as the 1990s.

Compared to the 1990s, workers' real wages are slightly higher today. So the amount of work to buy a gallon of gas is similar.

Options like hybrids further improve fuel efficiency. So the small increase in gas prices can be offset for those concerned.