What Did Gas Cost in the 1950s?
The 1950s were a transformative decade for transportation in the United States. Factors such as postwar prosperity, suburban living, and a decline in public transit led to a major increase in car ownership. At the start of the decade, approximately half of Americans owned an automobile; by 1960, nearly 75% of Americans owned at least one car, and many owned two. It was the golden age of the automobile.
Of course, a car can’t go anywhere without gasoline, so what did this trend mean for the price of gas? When we look back at the past, we tend to see lower prices and feel a sense of nostalgia for more affordable times. But vintage prices can be tricky; simply looking at a raw retail price from 70 years ago doesn’t tell the whole story. Let’s look at the numbers when adjusted for inflation to find the average cost of gas throughout the 1950s.
1950-1952
According to the U.S. Department of Energy, the national average for the cost of gasoline remained steady for the first three years of the 1950s at $0.27 per gallon. That low price might sound practically idyllic, but the average household income at the time was $3,300 per year. Adjusted for inflation, $0.27 in 1950 equates to about $3.52/gallon in today’s dollars. Nowadays, the median household income is $74,580.
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1953-1955
The Korean War, which began in June 1950, ended with an armistice in July 1953. A recession ensued that was typical of postwar economic cycles, as government spending decreased and military support operations were decommissioned. In the aftermath of the war, the gross domestic product of the U.S. fell by 2.2%. Unemployment, which had been steadily decreasing heading into the 1950s, began to increase. By September 1954, unemployment peaked at 6.1% — a rate not seen since before the conflict.
Despite the economic downturn, the average family income was higher than during the war, at around $4,200 per year. Gas prices followed suit and increased to an average of $0.29 per gallon between 1953 and 1955, though it was much cheaper in oil-producing areas of the country. For instance, in Omaha, Nebraska, gas was $0.179 per gallon in 1953. That’s about $2.11 in today’s money, while the national average of $0.29 is about $3.40 today.
1956-1959
In June 1956, Congress approved the Federal-Aid Highway Act, which called for the construction of 41,000 miles of interstate highways throughout the country. It was the largest public works project to date, and helped boost an economy that had already started to rebound in 1955. Construction on some spans of highway began almost immediately, with segments opening as early as the following autumn. The new roads provided increased access to suburban areas, which, combined with government programs and other socioeconomic factors, spurred the rise of the suburbs.
Part of the revenue stream for the new highway system was a gas tax increase, which rose from 2 cents per gallon to 3 cents per gallon. In response, the price of gas fluctuated between a 1-cent and 2-cent increase for the rest of the 1950s. In 1956, the national average was $0.30 per gallon, or around $3.47 today; in 1959, it was $0.31, the equivalent of $3.34 today.
Present Day
Depending on where you live, you might have noticed that the present-day dollar equivalents of those 1950s prices are right in line with what gas currently costs. According to AAA, the current national average is about $3.45 per gallon; the U.S Energy Information Administration lists a similar average of about $3.44 per gallon. By those metrics, the price of gas in 1950 was essentially higher than it is today. That said, if you live on the West Coast (which has the highest regional fuel cost, at approximately $4.30 per gallon), you might still be feeling nostalgic for 1950s gas prices.
