Let's not put lipstick on a pig: gas prices suck. Filling your tank can feel like making a down payment on new wheels, but before we start trading our cars for horses, let's look at the bigger picture. Today's gas prices aren't the worst we've ever seen, and there are reasons to keep things in perspective. So let's soldier on and put on our reality-colored glasses. Ugh.
Here are Five Fast Facts on gas prices:
- 💸 Expensive Habit - According to the US Energy Information Administration, average gas prices last month were about $3.36/gallon, nine cents lower than just a couple years ago. Your wallet may be screaming, but...the screaming has been worse, and it wasn't that long ago, either.
- 💪 Big Stick - The Iran mess has certainly caused prices to go up, but some would argue that a global flex is necessary now and then to keep bad actors in line. Sometimes protecting the country comes with an expensive receipt!
- 🤏 Teeny Tiny Detail - The key to historical perspective on gas prices is inflation, which adds another 9 cents per gallon. A couple years ago, though, that addition was a whopping $1.04/gallon! Remember the wallet screaming back then?
- 👍 Worky Worky - Another good bit of perspective is the labor force participation rate - how many people who want actually have them. The Fed says it's at or close to the highest rate (84%) in the last half century. More people working means more people who can afford those ugly gas prices!
- 💰 Better Pay - Inflation-adjusted household income has also gone up over the last couple of years, and the 2025 median income ($87k) was the highest since 1967! Higher gas prices still hurt, but bigger paychecks help soften the blow. A little.
🔥Bottom line: There's no doubt that gas prices are squeezing household budgets, and no one enjoys watching their paycheck disappear into a gas tank. But before declaring economic armageddon at pump No. 4, remember that gas prices aren't isolated - there's history there, inflation matters, and income matters, too. Reality-colored glasses aren't fun, but they help us see that the sky isn't falling. Of course, we'll be as glad as you to see those prices keep going down...
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