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Originally Posted by marichiko
Nice try, tw, but no cigar:
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Marichiko provided a chart that is suppose to be gasoline prices in 2005 dollars.
Chart is post #48
According to the Bureau of Labor Statistics' Consumer Price Index (CPI) data, a dollar in 1970 is now $5.04. That means in 2005 dollars, a gallon of gasoline in 1970 cost $1.75. According to Mari's chart, gas was suppose to cost about $1.45.
By 1979, with gas at $1.20 per gallon, gasoline was $3.40 per gallon using Commerce Department numbers. It looks like the Commerce Department has revised their conversions down from that last time I ran these numbers. According to Marichiko's chart, that price in 2005 dollars was only $2.60.
In 1979, a barrel of crude was costing $35 per bbl. In 2005 dollars, that would be $94 per barrel. Price spiked in June 1979 to $40 per bbl which would be $108 per bbl in 2005 dollars. Current oil prices have risen sharply to only $67 per barrel.
Back then, as they so often do, the Saudis worked to keep oil prices down. So when world market prices were at $35, the Saudis were selling crude at prices of between $18 and $23.50 per bbl. That is between $48.50 and $63 per barrel. Prices for crude and at the pump were significantly higher then compared to today.
In another oil crisis of 1973, gasoline jumped to about $3.25 per gallon in 2005 dollars. According to Marichiko's chart, that price in 1973 was only $1.75. I have problems with Marichiko's chart whose origin is not known. Its numbers contradict the Bureau of Labor Statistics numbers.