Peach Tree Times

The latest Gasoline Misery Index, which tracks how much more (or less) the average American consumer will have to spend on gasoline on an annualized basis, reports that the average American is spending around $341 more on gas this year when compared to the same time a year ago. 

The Gas Misery Index also reports Americans are spending $837 more on gas today than this time in January 2021. Georgians are spending $132 more on gas compared to last year. The state-wide average price of gas in Georgia is $3.252, as of October 11, AARP reports.

This comes as President Joe Biden announced the release of up to 180 million barrels of crude oil from the nation's SPR over a 6 month period on March 31 in his effort to curb high gas prices. At that time, the president said there would be a slight delay in declining gas prices by days and weeks, but the prices would eventually drop by an unknown range.  

The Strategic Petroleum Reserve (SPR) usually keeps around 700 million barrels of crude oil in the case of unstable market supply or international emergencies. According to the SPR webpage, it is the world's largest supply and the “sheer size” makes it a deterrent against oil cutoffs.

As of April 1, the SPR held 564.58 million barrels of oil in stock. As of Sep. 30, 2022, the SPR inventory stood at 416.39 million barrels of oil, a decrease of 148 million barrels since Biden's initial release.

The national average price of gas is $3.923 per gallon, as of October 11, 19 cents higher than last month and 65 cents higher than last year. The national average rose 12 cents in one week, due to OPEC+’s announcement to cut production by 2 million barrels per day and more drivers filling up, according to AARP. 

High demand and the rise of oil prices lead to higher gas prices, says the AARP.

While some note the SPR is unnecessary due to America's energy security Robert Rapier, in an op-ed for Forbes, accuses Biden of using the SPR to help his party win in 2022. This comes as Biden announced he will refill the SPR, which Rapier predicts will happen after the 2024 elections, calling Biden’s decision to tap into the SPR a “gamble” in that he must hope the US does not encounter an foreign oil supply crisis, which the SPR was created to address. 

At its highest in 2010, the SPR reached 726.6 million barrels. It is now below 420 million barrels, the lowest in almost 40 years. In the past, the U.S. has become more reliant on its own oil production, such as in 2021, when the U.S. was a net exporter of crude oil, leading some to suggest the SPR is not as needed.

Biden’s executive order on federal oil and gas leases was released on Jan. 27, 2021, citing the “climate crisis” as the main reason for the moratorium. The order lays out ways the Administration will prioritize the climate crisis including “(pausing) new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review.” 

The Biden Administration announced the release of 10 million more barrels from the SPR in November, according to Fox Business. The Administration’s original plan was to stop releasing barrels from the SPR on Oct. 31, but due to OPEC’s decision to cut 2 million barrels per day, "The President will continue to direct SPR releases as appropriate to protect American consumers and promote energy security," said White House officials, according to Fox Business.

Critics of Biden’s plan have made it clear they believe the actions are intended to appease voters in the midterm elections. 

In a Fox News Interview with John Kirby, Coordinator for Strategic Communications at the National Security Council in the White House, Kirby said "We need to be less dependent on OPEC+ and foreign producers of resources like oil," after the OPEC+ cut announcement, while the Washington Free Beacon says the Biden Administration looks to foreign oil, relying on OPEC+ and stifling domestic production.