In addition to 40-year-high inflation levels, Metro Business Daily's latest "Gasoline Misery Index" shows that Americans will spend an average of $704 more on gas this year over last year.
In Arizona, residents are projected to spend $800 more.
With President Joe Biden’s announcement that the U.S. would release 1 million barrels of oil per day from strategic reserves, gas prices could drop “maybe a penny every day or two,” Patrick De Haan, head of petroleum analysis at GasBuddy.com, told CNBC, but experts caution drivers that the global oil market remains unstable.
“We could see the national average price of gasoline fall back under $4 a gallon in the few weeks ahead,” De Haan told CNBC. “Diesel should fall back under $5 a gallon nationally as well.”
The index tracks how much more or less the average American consumer will have to spend on gasoline year over year. The index is compiled from data from the American Automobile Association (AAA), as well as fuel efficiency data from the U.S. Department of Energy and average miles driven tracked by MetroMile.com. Projections in Arizona have stood at $800 for the past two weeks.
On April 1, Biden announced the release up to 180 million total barrels of crude oil from the nation's Strategic Petroleum Reserve over the next six months, in his effort to curb high gas prices. The president says this action will “serve as a bridge until the end of the year when domestic production ramps up.”
After hitting a record $4.33 per gallon on March 11, the national average has dropped slightly to $4.17, as of April 5. AAA has said the primary reason is a global drop in crude oil prices, which peaked after Russia invaded Ukraine in February, but is now more than $20 lower and hovering near $105 per barrel. In Arizona, the current statewide average is $4.64 per gallon.
According to the U.S. Energy Information Administration, the national average for a gallon of gas was $2.33 in January of 2021. It has increased 80% to last week's national average price of $4.22. A number known as the “Biden Misery Index” shows that the average American now spends $992 more on gas than they did when Biden took office.