Gas prices at the pump are up 40 percent since the start of the year and Republicans are blaming the Biden administration, which does not accept the guilt.
“I think there sometimes is a misunderstanding of what causes gas prices to increase and so, to convey to the American people that we’re working on it and certainly the supply availability of oil has a huge impact,” White House press secretary Jen Psaki said at the Tuesday briefing, as quoted by The Hill.
“I would also say that ensuring Americans don’t bear a burden at the pump continues to be a top priority for the administration at large,” Psaki added. She then went on to note President Biden’s refusal to impose a gas tax on drivers as one of the sources of funding for his huge infrastructure plan.
“That’s one of the core reasons why the president was opposed, vehemently opposed, to a gas tax and any tax in vehicle mileage, because he felt that would fall on the backs of Americans and that was a bottom line, red line for him,” Psaki said.
Meanwhile, prices at the pump are the highest in seven years thanks to a strong rebound in travel demand following the mass vaccinations across the country. The average price for a gallon of gas has topped $3 and will remain elevated at least until the end of summer, according to the AAA, as quoted by CBS News.
Rising global oil prices also had a part to play in higher U.S. gas prices as did subdued local production. With OPEC+ still keeping output tight and demand rebounding across the world, higher prices were the only logical outcome. And, to be fair, there is little the U.S. administration could do except follow in Trump’s footsteps and ask OPEC to start producing more oil.
Indeed, members of the Biden administration have already urged the cartel to up its production. This time, however, things are a bit more complicated in the oil cartel as the UAE is refusing to play to Saudi Arabia and Russia’s tune and is insisting on getting a new baseline from which to cut production.
By Charles Kennedy for Oilprice.com
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