The inflation at the gas pump continues to soar with no relief in sight, according to a recent report that predicts gas prices rising well into the summer.
This week’s Gas Misery Index reports that motorists in America will spend $814 more on gas than they did a year ago, with the average price for a gallon of gas in the country at $4.59, a jump of 16 cents from last week.
The index uses the average price of a gallon of regular gasoline and modifies the data with average miles traveled by the average miles per gallon of U.S. cars that is gathered from the price of gas data from the American Automobile Association (AAA), the U.S. Department of Energy data on the average fuel efficiency (mpg) data from and typical miles driven from MetroMile.com.
AAA notes that the Energy Information Administration (EIA) has provided data that shows gas production has decreased to 220.2 million barrels of crude oil, a drop of 4.8 million barrels. Despite the decrease in production, gas demand has jumped from 8.7 million barrels per day to 9 million barrels per day. The combination has led to higher gas prices, which AAA said will continue.
With Memorial Day weekend coming up, GasBuddy asked Americans about inflation’s effects on their travel plans. According to a news release on the site, 70% 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,” said Patrick De Haan, head of petroleum analysis for GasBuddy.
De Haan also tweeted, “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.”
The EIA reported that when President Joe Biden took office in January 2021, the average price for a gallon of gas stood at $2.33, a 97% surge compared to the current average price of $4.59. The Gas Misery Index has dubbed the report the Biden Misery Index because motorists are spending $1,187 more on gas annually than when he became president.
The summer outlook for drivers hoping to find relief at the gas pump is bleak.
JPMorgan is expecting prices to reach $6.20 per gallon for a national average by August. A Fox Business report notes that JPMorgan has “expectations of strong driving demand” continuing throughout the summer driving season, which ranges from Memorial Day until Labor Day.
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