US gasoline prices heading into Memorial Day weekend down from 2022

May 26, 2023
US retail prices for regular-grade gasoline averaged $3.53/gal, 26% lower than the inflation-adjusted price a year ago, according to data from the US Energy Information Administration.

On May 22, the Monday before Memorial Day weekend, US retail prices for regular-grade gasoline averaged $3.53/gal, 26% (or $1.24/gal) lower than the inflation-adjusted price a year ago, according to data from the US Energy Information Administration (EIA). Last year's Memorial Day gasoline prices were the highest since 2012.

The American Automobile Association (AAA) expects 6% more miles driven this Memorial Day weekend than last year due to lower gasoline prices. While retail gasoline prices are down from a year ago, they are still higher than they were in the 2019-2021 period.

Retail gasoline prices were down from last year due to lower crude oil prices. As of May 23, the average spot price of Brent crude oil in May was $76/bbl, down 35% ($41/bbl) from the inflation-adjusted average price in May last year. May Brent prices were also slightly below their inflation-adjusted averages for May 2019 and May 2021. Crude oil prices have retreated due to rising global production and weaker global economic conditions.

Although crude oil prices are lower now than the inflation-adjusted prices of 2019 and 2021, retail gasoline prices are higher. One reason for the higher retail gasoline prices is that gasoline inventories in 2023 have been at or below 5-year (2018–22) lows and, as of May 24, remain 10% below the May 5-year average, according to EIA’s Weekly Petroleum Status Report. More gasoline is being consumed in the US now than any other year since the start of the pandemic, which has reduced inventories.