Old North News

Although gas prices across the country continued this week to decline from their record highs, Americans are still paying a premium at the pump. 

President Joe Biden, in a press conference this week, said Americans should be prepared to weather high gas prices for "as long as it takes,” referring to the war in Ukraine. 

Demand for crude oil dropped this week, resulting in the dip in prices at the pump in the United States. Friday's national average price per gallon stood at $4.84, 17 cents higher than a month ago, but down from highs of $5.01 in mid June. 

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. As the national gas average hovers just below $5 a gallon, this week's Index currently sits at $904. 

North Carolina, where the average price of $4.49 per gallon is 8 cents down from a week ago, fares worse, with its Index at $1,001. 

AAA reported that the Energy Information Administration (EIA) announced that gasoline demand has fallen for two weeks in a row, adding that demand is lower now than it was at this time last year. The lower demand has put pressure on the price of crude oil. The report noted that concerns over the lack of economic growth, increasing inflation, and rising interest rates are behind the drop in demand for crude oil. 

The Gasoline Misery Index is computed 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. It tracks the average price of a gallon of regular gasoline and adjusts the cost using the average miles traveled by the average miles per gallon of American cars. 

The U.S. Energy Information Administration (EIA) archives show that in January 2021, the national average price per gallon of gasoline was $2.33. It has increased about 108% to reach Friday's national average price of $4.84. The difference between January 2021 and now results in a number that gasolinemiseryindex.com calls the Biden Misery Index, which shows Americans are spending an average of $1,318 more per year on gasoline today since the president entered office. 

In June, Biden called on Congress to suspend the federal gas tax for three months, which would amount to a savings of 18 cents per gallon. That proposed gas tax suspension does not appear to have much Congressional support. Biden might even need to convince key members of his party to vote for the suspension, as CNN has reported that key Democratic senators consider the proposal "shortsighted" and “inefficient,” and say it is not guaranteed to work.