Peach Tree Times

Gasoline prices continued to rise last week, as the nation saw an average of a 16-cent increase in just seven days. As of June 3, the national average price per gallon was reported at $4.76, 56 cents higher than a month ago. 

The latest Gasoline Misery Index showed that on average, Americans will spend $904 more annually on gasoline now than they did at this time last year. In the state of Georgia, the average of $4.22 per gallon was 9 cents higher than the previous week, and the misery number was at $935.

"We're less than 25c/gal away from a national average of $5/gal," oil and refined products analyst Patrick De Haan tweeted recently. "Still holding on to the date that happens as June 17 or so."

Compiled using gas price data from 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. The index tracks how much more (or less) the average American consumer is paying for gasoline on an annualized basis.

This comes as AAA reported that according to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 700,000 bbl to 219 million bbl last week. Meanwhile, gasoline demand grew from 8.8 million b/d to 8.98 million b/d as drivers fueled up for their travels during Memorial Day weekend. 

The AAA report noted that these supply and demand dynamics have contributed to rising pump prices. Coupled with volatile crude oil prices, pump prices will likely remain elevated as long as demand grows and supplies remain tight.

Additionally, crude prices have increased amid supply concerns from the market, the report said. Crude prices were also boosted by a rise in demand expectations from the market after China lifted COVID-19 restrictions in Shanghai. The EIA also reported that total domestic stocks dropped by 5.1 million bbl to 414.7 million bbl last week. As a result, the current storage level is approximately 13.5% lower than a year ago, contributing to rising crude prices. 

In January 2021, EIA data showed the national average price per gallon of gasoline was $2.33. Friday's national average price of $4.76 is a 104% increase over that amount—more than doubling it. Americans are spending an average of $1,276 more per year on gasoline today than when President Joe Biden first entered office, a difference the Gasoline Misery Index refers to as the Biden Misery Index.

The June 3 national gas price average of $4.76 per gallon was a 12.8% climb since March 31, the day of the SPR release. On that day gas was $4.22 per gallon, 54 cents cheaper than the June 3 level.

In his effort to bring down pump prices, the president announced on March 31 the release of up to 180 million barrels of crude oil from the nation's Strategic Petroleum Reserve (SPR) over the subsequent six months. The president said there would be a slight delay before prices started to decline and that prices would drop by an unknown range. Although prices dropped minimally after the release two months ago, the effect was very short-lived.