Great Lakes Wire

As gas prices continue to rise to new records each day, today’s national average price per gallon is reported at $4.59, up another 16 cents from last week.

With this, 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. In the state of Michigan, the average of $4.57 per gallon rose 22 cents in the past week and the misery number sits at $907.

“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,” Patrick De Haan, head of petroleum analysis for GasBuddy, wrote in a tweet Thursday.

With Memorial Day Weekend approaching, GasBuddy asked Americans about inflation’s effects on their travel plans. According to a press release on the site, 70% of survey respondents said their summer travel plans have been affected by high gas prices (an increase of 24% over 2021). 

“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. Soaring inflation has led to uncertainty over rising costs,” De Haan said in the release.

This comes as AAA reported Thursday total domestic gasoline stocks decreased by 4.8 million barrels to 220.2 million barrels last week, according to new data from the Energy Information Administration (EIA). However, gasoline demand increased from 8.7 million barrels per day to 9 million barrels per day. 

Tighter supply and increased demand have pushed pump prices higher. AAA says this supply/demand dynamic, combined with volatile crude prices, will likely continue to keep upward pressure on pump prices.

On May 4, Sen. Debbie Stabenow of Michigan was among 44 Senate Democrats who voted against 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 in the Gulf of Mexico and off the coast of Alaska.

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

According to the EIA, in January 2021 the national average price per gallon of gasoline was $2.33. It has increased 97% when compared to Friday's national average price of $4.59. In a number that gasolinemiseryindex.com calls the Biden Misery Index, Americans are spending an average of $1,187 more per year on gasoline today since President Joe Biden entered office in January 2021.

As prices continue to rise, JP Morgan reports gas prices are not going to drop and could actually jump another 37% by August, hitting a predicted $6.20 per gallon national average. According to a FOX Business report, this is largely due to "expectations of strong driving demand" throughout the summer driving season, which spans from Memorial Day and lasts until Labor Day, the analysts wrote.