How Much Did You Pay?

Published on November 22, 2022, Updated on June 27, 2023 By Tim McMahon 

Historical Gasoline Prices in Pictures–  

I thought it would be fun to look at some pictures of gasoline prices in days gone by. Of course, we have to remember that salaries were much lower in those days as well. Inflation doesn’t affect all prices equally. Let’s look at how Gasoline Prices and Wages relate since the 1920s. 

In 1924 my grandfather probably paid around 21 cents a gallon for gasoline. The average wage was about 62.6¢/hour. But that was just the average, a unionized carpenter in Boston would have made a whole Dollar an hour.

Gasoline Prices and Wages in the 1930s

Imagine paying 15½ cents for a gallon of gasoline. The only time gasoline prices were anywhere near this low was in the 1930s.

The average wage for a “common laborer” in 1931 was 41.2¢ per hour, but on the low end, some only made 10¢ per hour, meaning the lowest paid laborer would have to work an hour and a half to get 1 gallon of gasoline. But then again, in those days, the lowest-paid laborers wouldn’t have anything to put gas in, since they couldn’t afford a car either. At 17¢/gallon, the average laborer would have to work just under 25 minutes to buy a gallon of gasoline.

Gasoline Prices and Wages in the 1950s

By 1950 the average price of gasoline had increased to 27¢/gallon. The average annual income was only $2,000/year or $38/week, so it was less than $1/hour. So, a gallon of gasoline would cost the average worker about 17 minutes of labor. 

In January of 1950, the Federal minimum wage was raised to 75¢/hr. so a minimum wage worker would take 21.6 minutes to earn a gallon of gasoline.

Gasoline Prices and Wages in the 1970s and 80s

Throughout the 1970s, gasoline had steadily climbed from 36¢/gallon in 1970 to 88¢/gallon in 1979. And for the first time in the history of the U.S., gasoline costs more than $1.00 in 1980. It averaged $1.35 in 1981.

The average annual wage in 1981 was $15,432, so despite the massive run-up in the price of gas, the average worker only had to work less than 10 minutes to buy a gallon of gas. In January of 1981, the minimum wage was raised to $3.35. So, a minimum-wage worker would have to work just under 24 minutes to earn a gallon of gasoline.

Gasoline Prices and Wages in the 1990s