Americans will spend an average of $667 more for fuel this year than they did last year.
“To be fair, gas prices moderated modestly toward the end of April, but remain above $4 a gallon,” Douglas Holtz-Eakin, president of the American Action Forum, said in a statement this week. “Since the start of the Biden administration, gas prices are up over 80%. This record of futility drives home the basic economics of the situation: Either admit you want gas (and other carbon-based fuel) prices higher and sell it politically on the merits, or take some real, permanent action on domestic production that stands a chance of increasing supply enough to reduce gas prices.”
The Gasoline Misery Index tracks how much more (or less) the average American consumer is paying for gasoline on an annualized basis. 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.
According to the U.S. Energy Information Administration (EIA), in January 2021 the national average price per gallon of gasoline was $2.33. It has increased nearly 79% when compared to Friday’s national average price of $4.16. With a number that gasolinemiseryindex.com calls the Biden Misery Index, Americans are spending an average of $961 more per year on gasoline today since the president entered office in January.
AAA reports that according to the EIA, total domestic gasoline stocks decreased by 1.6 million oil-carrying barrels to 230.8 million barrels last week.
Gasoline demand decreased slightly from 8.87 million barrels per day to 8.74 million barrels. Although lower gas demand would typically push pump prices lower, the fluctuating oil price and tight gasoline supply have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $100 per barrel.
E15, a type of gasoline that uses a 15% ethanol blend and 85% gasoline, is set to be sold in the U.S. this summer in an effort to expand Americans’ access to affordable fuel supply, the White House announced. This is Biden’s latest attempt to bring down pump prices. According to the White House, at current prices, E15 can save a family an average of 10 cents per gallon of gas.
The Drive reports that to most American drivers, E15 won’t be worth the saved 10 cents. The increased amount of ethanol in E15 decreases gas mileage in most cars, causing drivers to spend more on gasoline, and is likely to damage car engines.
Reporting from D.C. Business Daily
