Silver State Times

Drivers hoping to find relief at the gas pump won’t get their break anytime soon, according to analysts who watch the oil market.

The Gas Misery Index reports that as of June 3, motorists in the state of Nevada are spending $965 more now on gas than they did a year ago.

According to the report, the average price for a gallon of gas in the country is inching close to $5, accounting for Americans spending an average of $904 more on gas annually. In Nevada, drivers already are paying an average of $5.41 per gallon, reflecting a 17-cent surge from the week of May 22.

The index tracks how much more (or less) Americans are spending on gas on an annualized basis. The data is modified to reflect the price of gas data from the American Automobile Association (AAA), data on the average fuel efficiency (miles per gallon) from the U.S. Department of Energy and typical miles driven from MetroMile.com.

"We're less than 25c/gal away from a national average of $5/gal. Still holding onto the date that happens as June 17 or so," Patrick De Haan, oil and refined products analyst at GasBuddy, tweeted on June 2. Of course, Nevada has already exceeded the $5 per gallon mark.

According to AAA, the Energy Information Administration (EIA) has provided data that total domestic gasoline stocks recently decreased by 700,000 barrels of crude oil (bbl) to 219 million bbl. The demand outpaced supply, growing from 8.8 million barrels a day (b/d) to 8.98 million b/d as drivers fueled up for Memorial Day weekend. Demand is expected to intensify further now that China has lifted COVID-19 restrictions in Shanghai.   

The EIA reported that when President Biden took office in January 2021 the usual price for a gallon of gas stood at $2.33, a 104% surge compared to the current national average of $4.76. The Gas Misery Index has dubbed the report the “Biden Misery Index” because motorists are spending $1,276 more on gas annually than when he became president.

Drivers have seen little relief at the gas pump despite President Biden releasing 180 million barrels of crude oil from the nation's Strategic Petroleum Reserve to help lower gas prices. President Biden made the announcement in March in order to curb rising gas prices within several weeks; however, analysts are in agreement that prices will continue to climb for the foreseeable future.

Today's national gas price average of $4.76 per gallon has climbed 12.8% since March 31, the day of the SPR release, when gas was $4.22 per gallon, 54 cents cheaper than today.