Gas Prices: On The Money.

Note the historical price of gas: Adjusted for inflation, it has cost just under $2/gal. for the past couple of decades, excluding a couple of major spikes. That is, for the whole of the time I've been paying attention, the price of a gallon of gasoline has bought about the same amount of stuff.

Right now, gas costs. . . just under two dollars a gallon. I have been having the feeling recently that it was a good price for gas to be, but now my hunch is looking even better considering the price of gas vs. the value of a dollar. This chart from calculatedrisk is talking about oil recovery (drilling) investment in the US, but I think you are all smart enough to see blue the gasoline price trendline I'm talking about. Click the image to see it full size.



By the way, my rule of thumb for gas prices relative to oil prices is also holding up pretty well. Right now we're just about $47/barrel.