Drivers in Nevada will spend $1,042 more on gas than they did a year ago, according to this week’s Gas Misery Index. The national average price for a gallon of gas is 33 cents higher than a month ago with Nevada coming in at $5.60, according to the report.
The Gas Misery Index measures how much more (or less) the average American consumer will have to spend on gasoline on an annual basis. Officials track the average price of a gallon of regular gasoline, then modify the data using the average miles traveled by the average miles per gallon of American cars. The information is based on the price of gas from AAA, average fuel efficiency data from the U.S. Department of Energy, and typical miles driven from MetroMile.com.
“Crude prices have dropped this week amid broad market concern regarding the potential for economic growth to slow or stall due to rising interest rates and inflation. A lower economic growth rate than expected could cause crude demand to decline, leading prices to follow suit,” wrote AAA.
The Energy Information Administration (EIA) did not provide information with regards to the supply and demand of gas because of “system issues,” according to a recent AAA news release. The report stated that the need for crude oil had dropped slightly because of the impact inflation would have on the economy.
Despite the dip in gas prices, drivers have felt little relief when fueling their vehicle. The EIA reported that when Pres. Joe Biden took office in January 2021, the average price for a gallon of gas stood at $2.33. The current national average price of $4.76 per gallon represents a 115% surge since then. The Gas Misery Index dubbed this number the Biden Misery Index because motorists are spending $1,402 more on gas annually than when Biden became president.
President Joe Biden asked Congress earlier in the week to consider suspending the federal gas tax for three months. This would amount to an 18 cent per gallon in savings.
However, that solution is not without its criticism. Maya MacGuineas, opinion contributor for The Hill and president of the bipartisan Committee for a Responsible Federal Budget, emphasized the dangers of a federal gas tax suspension. Among many risk factors, she says a gas tax holiday would amplify the climate crisis and slow the development and adoption of cleaner technologies.
