Seasonality of U.S. Retail Gasoline Prices
Chart of the Week for May 22 - May 28, 2009
The chart above illustrates retail gasoline prices in the United States over the past five years. The chart's underlying data is gathered by the American Automobile Association ("AAA") on a weekly basis. The prices shown above represent the average national dollar cost per gallon of regular unleaded gasoline in the U.S.
As can be seen from the chart, gasoline prices tend to rise or remain elevated during the summer months and fall during the winter months. Several factors contribute to this seasonality. For example, demand for gasoline typically increases during the summer, as individuals log more car mileage for vacations. Another reason for the increase in gas prices is that oil refiners are forced by regulatory bodies to switch the types of gasoline blends they use to cleaner types each summer. Because the cleaner blend of gasoline is more expensive to produce, the additional cost is passed on to the average consumer at the gas pump.
While oil prices in general have been tempered over the last six to eight months by factors such as growing supplies and depressed energy demand, the seasonal trend of gas prices may continue. Gas prices one year ago, in mid-May 2008, averaged $3.80 per gallon, compared to $2.33 today. However, today’s price is still substantially greater than the average price in early December 2008, which was $1.63.
This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.
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