Record breaking increases in motor fuel prices in 2022

From January to June 2022, the price of regular motor gasoline rose 49% and the price of diesel fuel rose slightly more at 55%. Fuel prices have risen since declining in early 2020 during the economic recession and the period when many states adopted stay-at-home orders in response to COVID-19 (figure 1). Fuel prices declined from June to July 2022 but remain more than twice as much as their level in early 2020.

NOTE: Shaded area indicates economic recession. Regular gasoline price is the average retail price for regular grade formulations, and on-highway diesel price is the average retail price for diesel used in motor vehicles. The monthly prices are a simple average of weighted weekly estimates collected by the U.S. Energy Information Administration. Prices include all federal, state, and local taxes paid at the time of sale.

SOURCE: U.S. Department of Energy, Energy Information Administration, available at https://www.eia.gov/opendata/q... (series id = EMD_EPD2D_PTE_NUS_DPG and EMM_EPMR_PTE_NUS_DPG)

Fuel price increases in 2022 are recording breaking. The February to March 2022 price increase for both regular motor gasoline and diesel fuel was the largest month-over-month gain on record (table 1).

Table 1. Top 3 largest month-over-month increases

(January 1995 to June 2022)

On-highway diesel Regular motor gasoline Rank Date Change from previous month Date Change from previous month 1 Mar-2022 27% Mar-2022 20% 2 Mar-2008 15% Sep-2005 17% 3 Jun-2009 14% Jun-2009 16%

Regular gasoline price is the average retail price for regular grade formulations, and on-highway diesel price is the average retail price for diesel used in motor vehicles. The monthly prices are a simple average of weighted weekly estimates collected by the U.S. Energy Information Administration. Prices include all federal, state, and local taxes paid at the time of sale.

SOURCE: U.S. Department of Transportation, Bureau of Transportation Statistics calculations from U.S. Department of Energy, Energy Information Administration, available at https://www.eia.gov/opendata/q... (series id = EMD_EPD2D_PTE_NUS_DPG and EMM_EPMR_PTE_NUS_DPG)

Some states are turning to gas-tax holidays to provide relief to consumers. Each state sets its own tax rate on motor fuel and the proposed or passed legislation suspends the tax for a set period of time (i.e., a gas-tax holiday). An analysis of 50 states, as of the week of August 8, 2022, shows 29 states have proposed legislation changing their state gas or diesel tax, or providing gas tax rebates. Of those 29 states, six signed legislations to temporarily suspend their state diesel or gas-tax: California, Connecticut, Florida, Georgia, Maryland, and New York.

The Bureau of Transportation Statistics’ (BTS’) new interactive State Motor Fuel Revenue, State Fuel Taxes, and Fuel Prices visualizations track the price of motor fuel and revenue collected by states from motor fuel sales. Data are available by month, beginning with January 2019. The visualizations also show the tax rate set by states on motor fuel.