Changes in retail energy prices and the consumer price index

Household energy use patterns and retail energy price trends for electicity, gas, oil and coal, and gasoline are examined for the period 1950–74. The major results of this examination are listed below. 1.1. Households directly use about one-third of the Nation's total energy: 22% in their homes and 13% in their autiomobiles. In 1974, American households spent $70 billion on the 25 QBtu of fuel they consumed directly.2.2. The Consumer Price Indices for fuels showed sizable changes between 1950 and 1974. Electricity prices (“real prices, not “nominal” prices) declined 27% between 1950 and 1970 and then climbed 9% between 1970 and 1974. Gas prices increased 9% during the 1950s, declined 15% during the 1960s, and rose 4% between 1970 and 1974. Oil and coal prices remained nearly constant between 1950 and 1965; between 1965 and 1972 prices declined 5%; since then prices increased more then 50%. Gasoline prices remained nearly constant between 1950 and 1965; the next seven years saw a 14% decline followed by a 26% increase between 1972 and 1974.3.3. The energy price changes proposed by President Ford in January 1975 would, if implemented, increase the Comsumer Price Index by about 1.3% due to direct impacts and another 0.9% due to indirect impacts—a total increase of 2.2%.