Old North News

As North Carolina residents get ready for Memorial Day weekend, many may be staying closer to home than usual because of high gas prices.

In a GasBuddy.com survey, 70% of respondents said their summer travel plans have been affected by high gas prices, an increase of 24% over 2021, a Thursday news release on the website said.

“Against a backdrop of gas prices that have continued to set new records ahead of Memorial Day, Americans have been resilient in their desire to hit the road, but we’re certainly seeing increased hesitancy due to rising prices at the pump," Patrick De Haan, head of petroleum analysis for GasBuddy, said in the release. "Soaring inflation has led to uncertainty over rising costs.” 

It could be the most expensive Memorial Day weekend ever for gas, as De Haan noted that fuel prices are setting a new record for the upcoming holiday weekend.

"US #gasprices this Memorial Day could be not just higher than any other Memorial Day, but $1/gal higher than the previous record of $3.66/gal from 2014," GasBuddy tweeted on Thursday.

The Gasoline Misery Index tracks how much more (or less) the average American consumer will have to spend on gas on an annualized basis. The index — compiled from gas price data from AAA, average fuel efficiency (mpg) data from the U.S. Department of Energy and average miles driven from MetroMile.com — tracks the average price of a gallon of regular gasoline and adjusts according to the average miles traveled by the average miles per gallon of American cars.

The latest index shows that North Carolina residents will spend an average of $907 more on gas this year than they did last year. Also, the state average of $4.38 per gallon rose 17 cents in the last week.

Friday's national average price per gallon has been reported at $4.59, up 16 cents from last week. The latest Gasoline Misery Index shows that on average, Americans will spend $814 more annually on gasoline now than they did at this time last year.      

On Thursday, AAA reported that total domestic gasoline stocks decreased by 4.8 million bbl to 220.2 million bbl last week, new data from the Energy Information Administration (EIA) said. But gasoline demand increased from 8.7 million b/d to 9 million b/d. Tighter supply and increased demand have pushed pump prices higher. The report noted that this supply/demand dynamic, combined with volatile crude oil prices, will likely continue to keep upward pressure on pump prices.

In January 2021, EIA data showed the national average price per gallon of gasoline was $2.33. Friday's national average price of $4.59 is a 97% increase over that amount. Americans are spending an average of $1,187 more per year on gasoline today than when the president first entered office, a difference the Gasoline Misery Index refers to as the Biden Misery Index.  

JPMorgan analysts think gas prices are not going to drop and could actually jump another 37% by August, hitting a predicted national average of $6.20 per gallon, a Fox Business report said this week. The analysts said this is due to "'expectations of strong driving demand' throughout the summer driving season, which spans from Memorial Day and lasts until Labor Day."

On May 4, North Carolina Sens. Thom Tillis and Richard Burr were among 53 Senate Republicans who voted for Sen. John Barrasso’s (R-WY) motion to require the immediate development of a new five-year federal offshore oil and gas leasing plan. The plan, which is intended to ease energy prices in the U.S., mandated lease sales for oil and gas exploration off the coast of Alaska and in the Gulf of Mexico.