Gas Prices Under Ronald Reagan (1981–1989)
The U.S. average price of regular gasoline across Ronald Reagan’s time in office, shown at the pump and in inflation-adjusted 2025 dollars. These figures describe what prices were during the term — they do not measure the effect of any president’s policies.
1981
1989
Start to end
Mean over 8 years
Pump: 1981 · adj.: 1981
Pump: 1986 · adj.: 1986
Gas prices during Reagan’s term
The national average for regular gasoline from 1981 to 1989. Toggle between the price at the pump and constant 2025 dollars. Before 2000 only an annual national average is available, so this shows one point per year.
What was happening in oil markets
After the early-1980s peak, a global oil glut and rising non-OPEC output led to the 1986 price collapse, one of the largest crude declines on record. Gasoline fell substantially over the term.
What actually moves gas prices
It is tempting to credit or blame whoever is in the White House for the price at the pump, but economists across the spectrum agree that a president’s direct influence is limited. The price of gasoline is set mostly by forces that operate on a global scale and on their own timelines:
- The global price of crude oil, which typically accounts for the majority of what you pay and is set in worldwide markets.
- OPEC+ production decisions and the output of other major producers, which raise or cut global supply.
- Refining capacity and outages, which determine how much crude becomes gasoline, and where.
- Demand and seasonality, including the summer driving season and the switch to costlier summer blends.
- Geopolitics and taxes, from wars and sanctions to state and federal fuel taxes.
Prices rose and fell under presidents of both parties for reasons that usually had little to do with who held office. These pages report what prices were during each term; they do not assign credit or blame.
What a president can and cannot do about the price at the pump.
Gas prices under Reagan, answered
- What was the highest gas price under Ronald Reagan?
- Adjusted for inflation, the most expensive gasoline reached during Ronald Reagan's term was $4.66 per gallon in constant 2025 dollars (1981). The highest at-the-pump price was $1.32 (1981). Short-term peaks generally tracked moves in the global crude oil market.
- What did gas cost when Ronald Reagan took office?
- At the start of the term (1981) the U.S. average for regular gasoline was $1.32 per gallon, or $4.66 in constant 2025 dollars.
- How much did gas prices change under Ronald Reagan?
- From the start of the term to its end (1989), the pump price went from $1.32 to $0.96 a gallon — a change of −$0.35 (−26.7%). Adjusted for inflation it went from $4.66 to $2.51, −46.2%.
- Did gasoline get more or less expensive under Ronald Reagan?
- In inflation-adjusted terms the average price fell over the term (at the pump it fell). This reflects what prices were during the term and is not a measure of any president's policies — gasoline prices are driven mainly by global oil markets, which moved for reasons largely outside any president's control.
Source: U.S. Energy Information Administration, national average retail price of regular gasoline. Before 2000, figures use EIA's annual national series (one point per year); the term-boundary price is that calendar year's average. Inflation adjustment uses the BLS Consumer Price Index (CPI-U), constant 2025 dollars. Party is listed as a matter of record; this page does not attribute price changes to any president or policy.