In 1978, the average cost of a gallon of standard unleaded gasoline in major cities in the United States was 65 cents to 71 cents. It varied from $3.35 to $3.74 in 2013 (January to October), more than 5 times greater than in 1978. In instance, the All Items Consumer Price Index for Urban Consumers (CPI-U), which tracks increases in the cost of consumer goods and services purchased by households, was almost 3.6 times greater in the first ten months of 2013 than it was in 1978.
What was the cost of gasoline in 1970?
The energy crisis of the 1970s is perhaps the most well-known and significant shock to the oil economy. The Organization of Arab Petroleum-Exporting Countries (OAPEC) broke policymakers’ expectations about their reliance on American trade, causing prices to skyrocket from $3 to $12 per barrel. Drivers in the United States went from paying $0.36 per gallon in 1970 (equivalent to about $1.72 per gallon in today’s currency) to $1.19 per gallon in 1980 (equivalent to about $2.95 per gallon in today’s dollars).
There was a severe global recession in the late 1970s and early 1980s. Unemployment rose to 9% in 1975, up from 5.1 percent. It peaked at 10.8 percent in 1982, the highest level since the Great Depression. Banks and lending institutions battled to regain control of the economy. Other countries, such as Japan, were afflicted by “Reagan’s Recession,” which had a lot of problems at the time and was famous for having a significant homelessness problem.
In 1976, how much did gasoline cost?
According to the US Bureau of Labor Statistics, the current national average for petrol as measured by the Consumer Price Index was $1.56 a gallon, while the inflation-adjusted price for a gallon that cost 59 cents in 1976 is $1.83.
When was the last time there was a gas shortage?
Following the 1979 shortage, petrol prices skyrocketed; according to the US Department of Energy, the national average price for a gallon of gas nearly doubled from 1978 to 1980, exceeding $1 for the first time.
For the next 20 years, prices remained reasonably stable, varying between 90 cents and $1.23 per gallon.
With the new millennium came a general upward trend in prices, which peaked at $2 in 2005.
Then, in late 2007 and early 2008, a mixture of domestic and international difficulties resulted in a significant price hike, and images of gas stations began to appear on the front pages of Lancaster newspapers once more.
In November 2007, gas in Lancaster County surpassed $3 a gallon for the first time, and by June 2008, it had risen to $4, its all-time high.
The high costs had reduced by the autumn, and by October, they were back under $3 a gallon.
Residents in the county are once again experiencing costs in the $4 range. When inflation is factored in, however, the present high prices aren’t as awful as they were in the summer of 2008: A gallon of gas that cost $4.09 in 2008 would cost $5.34 now.
In 1960, how much did a gallon of gas cost?
In 1960, I recall paying 25 cents per gallon for fuel. Boy, those were the good old days! I multiply that by eight to account for the change in the Consumer Price Index since 1960, and I get $2 a gallon in today’s prices – still a bargain compared to today’s $3.80 a gallon. However, cars back then got 10 miles per gallon, whereas cars now get 20. We need to compare the cost per mile traveled to make an apples-to-apples comparison, therefore I’ll multiply by two. As a result, driving 20 miles (at 10 mpg) in 1960 cost $4, whereas driving 20 miles this week cost $3.80. (at 20 mpg).
Why wasn’t everyone in 1960 moaning about the high cost of gas? They had a bad situation but didn’t know it. Probably because the media wasn’t nearly as good at telling the people of the severity of the situation at the time.
In 1978, how much did a gallon of milk cost?
Nothing makes us feel as nostalgic as remembering how much goods used to cost back in the day. So, let’s go back in time and evaluate the cost of something you would use every day: milk.
To do so, we turned to the United States Department of Agriculture’s National Agricultural Statistical Service. It contains data on the national average price per hundredweight of milk from 1960 to 2016. We calculated the cost per gallon (by assuming 11.63 gallons of milk per hundredweight, and then rounding to the nearest cent.)
These figures show the amount paid to farmers for their milk, not the price you would pay in a supermarket. Starting in 1995, the University of Wisconsin-Madison provides the average retail price for a gallon of fresh whole milk. If you’re 22 or younger, you’ll also see costs for the year you were born.
: 36 cents per gallon
Milk was dirt-cheap dirt-cheap dirt-cheap dirt-cheap dirt Farmers were paid 36 cents a gallon for the white stuff in 1960, and you may have spent slightly more in the store.
: 36 cents
Throughout the 1960s, prices remained largely consistent, and the commodity cost of milk in 1961 was also 36 cents per gallon. (Yes, kids, the milkman used to deliver bottles to your house.)
: 37 cents
By 1965, the price of milk had begun a long and steady rise that would last for the next decade. This year’s milk price of 37 cents per gallon would be the last time it fell below 40 cents for producers.
: 43 cents
The late 1960s were characterised by turbulence and uncertainty as military operations in Vietnam intensified. However, the price of milk, which stayed relatively stable at 43 cents per gallon in 1967, might lead you to believe otherwise.
: 52 cents
The price of a gallon of milk in 1972 was merely 52 cents. People may not have known it at the time, but this would signal the end of a period of relatively steady milk prices and the start of a period of fast increases.
: 62 cents
If you were born in 1973, your parents may have had to set aside a little more money for milk. Prices increased by ten cents year over year, resulting in a commodity cost of 62 cents a gallon. The Chicago Tribune reported on Aug. 7, 1973, that the average retail price of a gallon was $1.20. “This is not the last such increase you’ll hear about this year,” a milk industry spokesperson was quoted as saying. This is really true.
: 72 cents
In 1973, the commodity price soared another ten cents to 72 cents per gallon, proving that the industry representative was correct. Increasing cow feed costs and other expenses have been blamed for the price increases. That didn’t stop President Richard Nixon from drinking a glass of milk with his final dinner in the White House, as seen above.
: 91 cents
The 1977 Food and Agricultural Act may have aided in pushing milk’s commodity price to 91 cents per gallon in 1978. According to a Chicago Tribune report from the period, retail prices in the Chicago area varied from $1.29 to $1.62 per gallon.
: $1.12
Ronald Reagan was elected president in 1980, the country was in the midst of a recession, and Iran was experiencing a hostage crisis. Despite the fact that there was a milk oversupply, the commodity price jumped to $1.12. According to news sources at the time, average retail prices in Chicago were $1.65 per gallon.
: $1.05
According to a Bureau of Labor Statistics research, a poor economy in 1991 resulted in lower producer prices. The price of a gallon of milk has fallen to $1.05.
: $1.11
Consider yourself unique if you were born in 1993. It’s the one year absent from the National Agricultural Statistical Service’s milk commodity price index. The Federal Milk Order price for that year, however, was $1.11.
: $1.10 commodity price, $2.52 retail price
People were only getting used to the internet in 1995, and it was also the first year that we had data on retail milk pricing. Farmers were paid $1.10 per gallon in that year, while your parents were probably paying $2.52 per gallon in the store.
: $1.27 commodity price, $2.73 retail price
In 1996, the dot-com boom was bursting, and milk costs were rising as well. On the commodity market, they cost $1.27 a gallon, while in the supermarket, they cost $2.73 per gallon.
: $1.15 commodity price, $2.67 retail price
Then the dot-com bubble crashed, and milk costs plummeted along with it. In 1997, commodities costs fell to $1.15 per gallon, while the retail price was $2.67.
: $1.33 commodity price, $2.86 retail price
Milk prices fluctuated throughout the 1990s, peaking at $2.86 a gallon at the supermarket in 1998. The price of the item had risen to $1.33 a gallon.
: $1.24 commodity price, $2.88 retail price
The commodity price then plummeted to $1.24 per gallon in 1999. Retail prices, however, did not follow suit and jumped slightly to $2.88 per gallon.
: $1.06 commodity price, $2.79 retail price
We were all relieved on January 1, 2000, when the computers continued to function and the end of the world was postponed until a later date. We could all enjoy a cheap glass of milk to commemorate the occasion. In 2000, the average wholesale price of milk was $1.06 per gallon, and the average retail price was $2.79.
: $1.28 commodity price, $2.90 retail price
According to reports, one of the reasons milk prices climbed to $1.28 for farmers and $2.90 in stores in 2001 was the introduction of a new pricing scheme enacted in a 1996 agriculture bill.
: $1.04 commodity price, $2.68 retail price
With the year 2002, prices fell once again, to an average retail price of $2.68 a gallon. That year, the commodity price fell to $1.04 per gallon, a low not seen since the late 1970s by dairy producers.
: $1.08 commodity price, $2.95 retail price
While farmers’ commodities prices grew by 4 cents to $1.08 per gallon in 2003, buyers paid 27 cents more at the pump, for an average of $2.95 per gallon.
: $1.38 commodity price, $3.23 retail price
In 2004, the average retail milk price surpassed $3.00 per gallon for the first time. Consumers paid $3.23 per gallon in stores, but farmers received only $1.38 per gallon.
: $1.11 commodity price, $3.00 retail price
Babies born in 2006 may have been drinking store-bought milk that cost $3.00 per gallon. Farmers, on the other hand, made $1.11 per gallon that year.
: $1.64 commodity price, $3.87 retail price
The average commodity price for milk in 2007 increased to $1.64, thanks to a 2006 drought and rising cattle expenditures. This resulted in a significant price increase for consumers, who paid an average retail price of $3.87 per gallon in 2007, making it the highest year for retail milk prices in the US (so far).
: $1.56 commodity price, $3.68 retail price
We were on the verge of what would become known as the Great Recession in 2008. Although milk remained pricey, it was reduced to $1.56 per gallon on the commodity market and $3.68 in supermarkets.
: $1.10 commodity price, $3.11 retail price
By 2009, the bottom had dropped out of the economy, and milk prices had followed suit. The commodity price dropped to $1.10 per gallon, but the average retail price dropped to $3.11.
: $1.40 commodity price, $3.32 retail price
By 2010, the price of milk had risen once more. The average commodity price per gallon was $1.40, while the retail price was $3.32.
: $1.73 commodity price, $3.57 retail price
In 2011, the average retail price of milk was $3.57 per gallon, while farmers received only $1.73 per gallon on average.
: $1.60 commodity price, $3.58 retail price
Farmers received less money in 2012, with the commodity price dropping to $1.60 per gallon, but the retail price rose a penny to $3.58.
: $2.06 commodity price, $3.82 retail price
In 2014, the commodity price of milk hit $2.06 per gallon, the only time dairy farmers saw it rise above the $2.00 mark. The average retail price was $3.82, which was slightly lower than the 2007 highs.
: $1.47 commodity price, $3.31 retail price
In 2015, milk output increased, resulting in lower pricing. The average commodity price per gallon was $1.47, while the retail price was $3.31.
: $1.40 commodity price, $3.28 retail price
Consider this: in 60 years, babies born last year will be able to recall how milk was just $3.28 in the stores the year they were born. And their grandchildren might think that’s a bargain.
Is milk a significant portion of your food budget? Please share your ideas in the comments section below or on our Facebook page.
How much did petrol cost in the 1980s?
In 1981, American drivers had it tough. That year, the average price of gasoline rose to $1.353 per gallon, up from $1.221 in 1980 and more than double the price just three years before. Inflation-adjusted, the average gas price in 1981 would have totaled $2.421 per gallon in 2020.
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To which 2022 drivers can only respond: “Give us that bargain!” If only life were that simple.
In 1977, how much did a house cost?
America saw several highs and lows in 1977. The Son of Sam murders occurred in New York City during the summer blackout, and Elvis Presley died at the age of 42. The Apple II computer, the Atari 2600 video game device, and one of the largest motion pictures of all time, The Godfather, were all released during the year “The Force Awakens.” John Travolta and John Travolta “Saturday Night Fever” was essential in ushering in the disco era, and home prices continued to rise.
In 1976, how much did a loaf of bread cost?
- Gerald Ford served as President of the United States in 1976, and Nelson Rockefeller served as Vice President.
- The rate of inflation was 5.76 percent. According to the Consumer Price Index of the United States Bureau of Labor Statistics, “The average price in 2018 is 341.31% greater than the average price in 1976. During this time, the dollar saw an average annual inflation rate of 3.60 percent, implying that the real worth of a dollar dropped. In other words, a $100 purchase in 1976 is worth around $441.31 in 2018, a difference of $341.31 over 42 years.”
- In 1976, a gallon of milk cost $1.68, a dozen eggs cost 97 cents, and a one-pound bag of Eight O’Clock Coffee cost $1.69. 89 cents per pound for chicken breasts, 39 cents for a one-pound package of Blue Bonnet Margarine, and $1.00 for three 20-ounce loaves of white bread.
- The sticker costs for two of the best-selling 1976 cars were $2,895.00 for a Ford Pinto and $4,895.00 for a Chrysler Cordoba.
- The average household income was $16,000.00, while a new home cost approximately $43,000.00.
- George Washington was posthumously raised to the rank of six-star general as part of the bicentennial celebrations.
- Red Dye No. 2, a food coloring used in everything from ice cream to makeup, was taken off the market in 1976 when Soviet experts claimed there was a relationship between the dye and cancer. From 1976 through 1987, red M&Ms were unavailable due to the embargo.
- The Liberty Bell was relocated to a new location behind Independence Hall in Philadelphia on January 1.
- Sara Jane Moore was sentenced to life in prison on January 15 for attempting to assassinate President Gerald Ford.
- The United States government established Conrail on April 1 to assist in the rescue of seven bankrupt railroads in the East and Midwest. According to the New York Times, “Conrail now has responsibility for handling approximately one-fourth of the nation’s train freight, and it has a near monopoly on railroad operations in the industrialized Northeast, thanks to $2.1 billion in Federal money for plant and equipment restoration.”
- The $2.00 banknote was reintroduced by the US Treasury on April 13th. Because of a decade ago, it was taken out of circulation “The back of the 1976 series, titled “public apathy,” featured John Trumbull’s painting of the signing of the Declaration of Independence. The $2.00 bill now accounts for around 1% of all bills in circulation in the United States.
- The British Parliament presented members of Congress with a replica of the Magna Carta during a ceremony in London on June 3 to honor America’s Bicentennial.
- In July, 149 American Legion delegates in Philadelphia became ill with Legionnaires’ illness.
- During a ceremony in Palmdale, California on September 17, NASA debuted its first space shuttle, the Enterprise.
- Jimmy Carter, a Democrat, was elected the 39th President of the United States on November 2. He was the first president from the Deep South since the Civil War, defeating incumbent Republican President Gerald Ford. Carter won 23 states and the District of Columbia in his election. He received 50.1 percent of the vote in the general election and 297 electoral votes.