The year 2016 witnessed a significant decline in average gas prices in the United States, reaching their lowest point since 2004. This article delves into the factors contributing to this decline, examines regional variations in gas prices, and highlights key trends observed throughout the year.
Key Facts
- Average U.S. gas prices: The average retail gasoline price in the United States in 2016 was $2.14 per gallon. This was 29 cents per gallon lower than the average price in 2015 and the lowest annual average price since 2004.
- Lowest prices since 2004: The low gas prices in 2016 were mainly attributed to lower crude oil prices in 2015. This resulted in a decrease in gasoline prices, making 2016 the year with the lowest average gas prices in over a decade.
- Regional variations: Gasoline prices varied across different regions in the United States. Here are some examples:
- East Coast: In cities like Boston, New York, and Miami, regular retail gasoline prices reached their highest levels during the summer driving season in June and were lowest in February.
- Midwest: Retail gasoline prices in Chicago peaked in mid-June during the summer driving season. Prices in Chicago were slightly above prices in Cleveland and the Midwest regional average during 2016.
- Gulf Coast: Gulf Coast retail gasoline prices tend to be the lowest in the country. In 2016, retail gasoline prices in Houston were consistently the lowest among the 10 cities surveyed.
- Rocky Mountains: Denver retail gasoline prices were the second lowest among the 10 cities surveyed for 28 weeks of 2016.
- West Coast: Gasoline prices on the West Coast, particularly in Los Angeles, tend to be higher than in other parts of the country due to strict fuel specifications, regional isolation, and higher taxes. Los Angeles had the highest prices for most of 2016.
National Average Gas Prices
In 2016, the average retail gasoline price in the United States stood at $2.14 per gallon, marking a decrease of 29 cents per gallon compared to the previous year. This decline was primarily attributed to lower crude oil prices in 2015, which had a direct impact on gasoline prices. As a result, 2016 became the year with the lowest average gas prices in over a decade.
Regional Variations
Gas prices across the United States exhibited regional variations, influenced by factors such as local taxes, supply and demand dynamics, and fuel specifications.
East Coast
In cities like Boston, New York, and Miami, regular retail gasoline prices reached their peak during the summer driving season in June and were lowest in February. This seasonal fluctuation is a common trend observed in many parts of the country.
Midwest
Retail gasoline prices in Chicago followed a similar pattern, with prices peaking in mid-June during the summer driving season. However, Chicago’s prices were generally higher than those in Cleveland and the overall Midwest regional average.
Gulf Coast
The Gulf Coast region, known for its extensive refining capacity, consistently had the lowest gasoline prices in the country. Houston, in particular, stood out with the lowest retail gasoline prices among the 10 cities surveyed throughout 2016.
Rocky Mountains
Denver’s retail gasoline prices were the second lowest among the 10 surveyed cities for 28 weeks of 2016. This can be attributed to the region’s relatively lower taxes and limited planned refinery outages.
West Coast
Gasoline prices on the West Coast, particularly in Los Angeles, tended to be higher than in other parts of the country. This is due to strict fuel specifications, the region’s relative isolation from other markets, and higher state and local taxes. Los Angeles had the highest gas prices for most of 2016.
Conclusion
In 2016, the United States experienced a notable decline in average gas prices, reaching their lowest point since 2004. This decline was primarily driven by lower crude oil prices in the previous year. Regional variations in gas prices were observed, with the Gulf Coast region having the lowest prices and the West Coast having the highest. These variations can be attributed to factors such as local taxes, supply and demand dynamics, and fuel specifications.
Sources
- North Carolina weekly gas price update – The Coastland Times | The Coastland Times (https://www.thecoastlandtimes.com/2021/01/18/north-carolina-weekly-gas-price-update-5/)
- U.S. gasoline prices in 2016 were the lowest since 2004 – U.S. Energy Information Administration (EIA) (https://www.eia.gov/todayinenergy/detail.php?id=29452)
- U.S. All Grades All Formulations Retail Gasoline Prices (Dollars per Gallon) (https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m)
FAQs
What was the average gas price in the United States in 2016?
The average retail gasoline price in the United States in 2016 was $2.14 per gallon, marking a decrease of 29 cents per gallon compared to the previous year.
What factors contributed to the decline in gas prices in 2016?
The decline in gas prices in 2016 was primarily attributed to lower crude oil prices in 2015. This resulted in a decrease in gasoline prices, making 2016 the year with the lowest average gas prices in over a decade.
Were there regional variations in gas prices in 2016?
Yes, gas prices varied across different regions in the United States. The Gulf Coast region had the lowest prices, while the West Coast, particularly Los Angeles, had the highest prices.
What were some of the reasons for the regional variations in gas prices?
Regional variations in gas prices can be attributed to factors such as local taxes, supply and demand dynamics, and fuel specifications.
When were gas prices the highest in 2016?
In many parts of the country, gas prices reached their peak during the summer driving season in June.
When were gas prices the lowest in 2016?
Gas prices were generally lowest in February across many regions in the United States.
How did gas prices in 2016 compare to previous years?
Gas prices in 2016 were the lowest since 2004.
What is the significance of the decline in gas prices in 2016?
The decline in gas prices in 2016 provided relief to consumers and businesses, contributing to overall economic growth and stability.