When accounting for inflation, the average gas price per gallon fell seven cents between March 2005 and March 2015, according to The U.S. Energy Information Administration. Without accounting for inflation, the price rose 38 cents.
Gas prices dropped considerably between July 2014 and January 2015 following a large drop in crude oil prices. The price of crude oil makes up approximately 72 percent of the cost of gasoline. As late as June 2014, inflation-adjusted prices were more than a dollar higher than in March 2005. In June 2008, before the market crash, average inflation-adjusted prices were at $4.39 a gallon, almost two dollars higher than in March 2005.
Prices for crude oil fell considerably between June 2014 and January 2015 due to a convergence of several major factors. According to Bloomberg, increased production in the United States, allowed by technological breakthroughs such as hydraulic fracturing, has significantly reduced the need for imported crude oil. At the same time, demand has been stagnant in much of Europe and Asia, and with Middle Eastern production less affected by conflict than expected, producers had to reduce prices to sell off excess supply. Prices were high before June 2014 because of low supply in the United States, and the high cost of imported oil following unrest in oil-producing Nigeria and oil-transporting Ukraine.