Gas Prices Last Year At This Time Reveal A Quiet Shift
Gas prices last year at this time reveal a quiet shift
Last year at this time-late May 2025-the U.S. national average for regular gasoline was $3.15 per gallon, down 12.6% year-over-year from May 2024, while Germany's average unleaded 95 price stood at €1.736 per liter (approximately $2.33 USD/L). This marked the third consecutive year of declining U.S. retail gasoline prices, with 2025's full-year average at $3.10/gal, $0.21 below 2024.
May 2025 Gas Price Benchmarks by Region
The Bureau of Transportation Statistics released detailed regional breakdowns for May 2025, showing consistent downward pressure across all U.S. census divisions.
| Region | May 2025 Price (USD/gal) | YoY Change |
|---|---|---|
| West Coast | $4.23 | -9.2% |
| Rocky Mountain | $3.13 | -8.4% |
| Central Atlantic | $3.11 | -14.9% |
| Midwest | $3.01 | -12.2% |
| New England | $2.97 | -16.6% |
| Lower Atlantic | $2.91 | -14.3% |
Diesel No. 2 averaged $3.50/gal in May 2025, down 8.5% from the prior year.
LNG Market Context: Why Gas Prices Declined
The gasoline price decline in May 2025 correlated with broader natural gas market dynamics. U.S. Henry Hub natural gas averaged $3.52/MMBtu in 2025, up from 2024's record lows but stabilizing supply costs. Meanwhile, Germany's LNG infrastructure expansion reached 25 MTPA terminal capacity in 2023, with utilization exceeding 85% and investment surpassing EUR 3.5 billion.
- Germany's LNG market valued at USD 2.4bn in 2024, projected to reach USD 4.8bn by 2030 at 12.3% CAGR
- European LNG terminals saw moderate 2024 utilization, with Wilhelmshaven at 80% capacity in early 2025
- American-origin spot volumes dominated German terminal imports, creating supply diversity improvements estimated at 45%
Key Drivers Behind the Quiet Shift
Three structural factors explain the price normalization observed last year at this time:
- Crude oil inventory build: Refinery maintenance cycles and increased shale output reduced crude price volatility in Q2 2025
- LNG import diversification: Germany's FSRU deployments reduced pipeline gas dependency, lowering wholesale energy costs that feed into refining margins
- Seasonal demand constraints: Spring driving season demand remained below pre-pandemic peaks, limiting retail price spikes
European gas prices exceeded Asian benchmarks in early 2025 due to high storage injection expectations and continued absence of Russian flows.
Comparison: May 2024 vs. May 2025
Year-over-year analysis reveals the magnitude of the shift in fuel cost environments:
| Metric | May 2024 | May 2025 | Change |
|---|---|---|---|
| U.S. Regular Gas (avg) | $3.60/gal | $3.15/gal | -12.6% |
| U.S. Diesel (avg) | $3.82/gal | $3.50/gal | -8.5% |
| Germany Unleaded 95 | ~€1.95/L | €1.736/L | -11.0% |
| Henry Hub Natural Gas | $1.62/MMBtu | $3.52/MMBtu | +117% |
The natural gas price rebound from 2024's record low contrasts with falling retail gasoline, reflecting refined product inventory dynamics separate from wholesale gas markets.
Everything you need to know about Gas Prices Last Year At This Time Vs Now What Changed
What were gas prices last year at this time in the U.S.?
The U.S. national average for regular gasoline in late May 2025 was $3.15 per gallon, representing a 12.6% decrease from May 2024 and marking the third consecutive year of price declines.
What were gas prices last year at this time in Germany?
Germany's average unleaded 95 gasoline price on May 30, 2025 was €1.736 per liter (approximately $2.33 USD/Liter), down from approximately €1.95/L in May 2024.
How do LNG market trends affect gasoline prices?
LNG market dynamics influence gasoline prices indirectly through refining margins and wholesale energy costs; Germany's expanded LNG infrastructure (25 MTPA capacity, EUR 3.5bn investment) improved supply diversity by 45%, reducing pipeline dependency and stabilizing regional energy costs that feed into refining economics.
Why did gas prices fall in May 2025?
Gasoline prices declined due to three factors: increased shale oil output reducing crude volatility, seasonal demand below pre-pandemic peaks, and improved LNG import diversification lowering wholesale energy costs that constrain refinery margins.
What does this mean for LNG industry investors?
The quiet shift toward stable fuel prices reflects mature LNG infrastructure deployment; Germany's LNG market growth (12.3% CAGR through 2030) and 85%+ terminal utilization rates signal strong long-term fundamentals for LNG infrastructure operators despite short-term demand challenges.
