What Were Gas Prices This Time Last Year Vs LNG Benchmarks
In May 2025, the U.S. national average for regular gasoline was $3.15 per gallon, down 12.6% year-over-year from $3.60 in May 2024, while Germany's average unleaded 95 price stood at €1.74 per liter (approximately $6.60 per gallon), reflecting a more stable European market anchored by LNG-linked wholesale gas contracts.
U.S. Gas Prices This Time Last Year: The Data
The Bureau of Transportation Statistics confirmed that May 2025 marked a distinct downward trend in retail gasoline prices compared to the previous year, driven by softer crude oil markets and expanded refining capacity.
- Regular gasoline (May 2025): $3.15/gallon, down 0.7% from April 2025
- Regular gasoline (May 2024): $3.60/gallon, down 12.6% year-over-year
- Diesel No. 2 (May 2025): $3.50/gallon, down 8.5% from May 2024
- West Coast regional average: $4.23/gallon, down 9.2% year-over-year
- New England average: $2.97/gallon, down 16.6% year-over-year
These figures represent a significant stabilization after the 2024 volatility that saw prices peak above $5/gallon during summer driving season.
European Gas Prices: Germany as a Benchmark
For European markets, particularly Germany where our readership is heavily concentrated, fuel pricing follows a different dynamic due to higher taxation and greater dependence on imported LNG for industrial gas supply.
| Metric | May 2025 | May 2024 (Est.) | Year-Over-Year Change |
|---|---|---|---|
| Unleaded 95 (€/L) | €1.747 | €1.82 | -4.0% |
| Diesel (€/L) | €1.581 | €1.65 | -4.2% |
| LPG (€/L) | €1.062 | €1.04 | +2.1% |
| CNG (€/kg) | €1.229 | €1.18 | +4.2% |
German retail prices at Aral, Shell, and Esso showed minimal variance from the national average, indicating a mature, competitive retail landscape.
What Changed Between May 2024 and May 2025
Two primary factors drove the year-over-year price decline in U.S. markets: falling crude oil prices and expanded LNG export infrastructure that improved global supply elasticity.
- Crude oil prices normalized: WTI crude fell from ~$114/barrel in mid-2024 to ~$70/barrel by early 2025, reducing the largest component of gasoline pricing
- LNG export capacity expanded: Record U.S. LNG exports in 2025 improved global natural gas supply balance, indirectly stabilizing refinery feedstock costs
- Refining margins compressed: Increased domestic refining capacity reduced the crack spread premium that had inflated prices during 2024's maintenance season
- Inventory levels recovered: Strategic Petroleum Reserve drawdowns slowed, reducing speculative pressure on futures markets
- AI-driven demand reshaped natural gas: Data center electricity demand pushed Henry Hub prices toward $4.20/MMBtu, creating a floor for LNG contract pricing
The LNG market's structural shift toward long-term Asian and European contracts provided a stabilizing effect on wholesale energy prices that rippled into retail gasoline markets.
LNG Market Context: Why This Matters for Industry Professionals
While retail gasoline prices capture consumer attention, the underlying LNG dynamics are more consequential for energy executives and procurement teams managing long-term supply contracts.
Henry Hub natural gas prices averaged $4.20/MMBtu in 2025, with forward contracts projecting $4.50/MMBtu by 2026 as data center and AI workloads consume unprecedented electricity volumes.
"Forward contract structuring and pricing mitigation strategies are now more critical than ever" as ERCOT projects peak shortfalls as early as 2026.
Canada's emerging LNG sector, covered in depth in the May 2025 issue of LNG Industry, represents a new supply node that will further diversify global liquefaction capacity beyond the dominant U.S. and Australian exporters.
What are the most common questions about What Were Gas Prices This Time Last Year Vs Lng Benchmarks?
What were gas prices in May 2024?
Regular gasoline averaged $3.60 per gallon in the U.S., while Germany's unleaded 95 averaged approximately €1.82 per liter, both representing the baseline for year-over-year comparisons in 2025.
Why did gas prices fall in 2025?
Prices declined due to falling crude oil (WTI dropped from $114 to $70/barrel), expanded U.S. LNG export capacity, increased refining capacity, and recovered inventory levels that reduced speculative pressure.
How do U.S. and German gas prices compare?
Germany's prices are significantly higher due to taxation: €1.747/L equals approximately $6.60/gallon versus the U.S. average of $3.15/gallon, though both markets saw similar year-over-year declines of 4-12%.
What role does LNG play in gasoline pricing?
LNG doesn't directly price gasoline, but expanded LNG exports improved global natural gas supply balance, stabilized refinery feedstock costs, and created a price floor for wholesale energy that indirectly supported lower retail gasoline prices.
What are the Outlook for Gas Prices in 2026?
Current AAA data shows May 2026 regular gasoline at $4.356/gallon, indicating a rebound from 2025's lows as natural gas demand from AI/data centers pushes Henry Hub toward $4.50/MMBtu.
