Old North News

Prices at the pump have dipped slightly in recent days, but with the average price still hovering near $5 per gallon, Americans are still paying significantly more for gas than they were at this time last year. 

The extra burden on North Carolina gas buyers continues to be higher than the national average.

"Crude prices have dropped this week amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation,” AAA wrote in an assessment online Friday. “A lower economic growth rate than expected could cause crude demand to decline, leading prices to follow suit.”

The Gasoline Misery Index on gasmiseryindex.com tracks how much more (or less) the average American consumer will have to spend on gasoline on an annualized basis. Now that the national gas average has dipped slightly below $5 a gallon, to $4.93, this week's Index is at $972. North Carolina’s average price is lower, at $4.57, but the Index is worse, at $1,063, meaning that prices have gone up more than the national average increase. 

AAA reported that Energy Information Administration (EIA) will not release new data this week on supply or demand for gasoline, or oil inventory levels due to "systems issues.” Still, AAA said that demand for crude oil has been falling due to concerns over the lack of economic growth and increasing inflation. This has contributed to the slight decrease in gas prices. 

The Gasoline Misery Index is determined by using gas price data from the American Automobile Association (AAA), average fuel efficiency (mpg) data from the U.S. Department of Energy, and average miles driven from MetroMile.com. The index tracks the average price of a gallon of regular gasoline and adjusts using the average miles traveled by the average miles per gallon of American cars. https://www.gasmiseryindex.com

In January 2021, the national average price per gallon was $2.33, EIA archives show. It has increased by just over 111% when compared to Friday's national average price of $4.93. That comparison is used to reflect what  gasolinemiseryindex.com calls the Biden Misery Index, which shows Americans are spending an average of $1,365 more per year on gasoline today since the president took office. 

Earlier this week, President Joe Biden called for Congress to suspend the federal gas tax for three months. This would amount to a reduction of 18 cents per gallon. 

However, that proposal is not without its criticism. Maya MacGuineas, opinion contributor for The Hill and president of the bipartisan Committee for a Responsible Federal Budget, emphasized the dangers of a federal gas tax suspension. Among many risk factors, she says a gas tax holiday would amplify the climate crisis and slow the development and adoption of cleaner technologies.