Gas prices fell two cents to $4.779 a gallon on Wednesday, down 24 cents from their all-time high of $5.016 last month and on track to continue falling—though not fast enough for President Joe Biden, according to AAA data. Gas stations have been criticized for keeping prices high, as the crisis drags on their popularity.
Gas prices are likely to fall further after oil prices fell nearly 8% on Tuesday amid heightened recession fears, with benchmark West Texas Intermediate crude below $100 a barrel for the first time since early May (WTI fell further, falling .9% to $98.46 per barrel on Wednesday). ).
The price of crude oil is closely tied to the price Americans pay at the pump.
Patrick De Haan, Head of Analytics at GasBuddy, He said On Tuesday he sees a “potential decline of 40-65 cents per gallon in the coming weeks” if oil prices remain low.
Even if that decline occurs, gas prices will still be higher than they were before 2022, and the previous record was $4.103 per gallon in 2008.
Others aren’t as bullish as de Haan in predicting a major price drop with low oil prices: Vectis Energy Partners principal Tamar Essner told Yahoo Finance on Tuesday that gas prices won’t fall below $4 per gallon without “demand destruction,” while David Rundell, a partner at the consultancy Arabia Analytica, said prices “will not fall any time soon.” He said on Tuesday that he doesn’t think that will drop dramatically.
While Biden has faced fierce criticism for his inaction on gas prices, which have been a key driver of the US’s highest inflation since 1981, much of the rise in gas prices can be traced to Russia’s invasion of Ukraine, which threatens global energy supplies. Biden last month called for a federal gas tax holiday, which would temporarily suspend the federal gas tax of 18% per gallon. Many have characterized the move as an unrealistic way to lower prices, and Biden’s proposal has failed to gather support in Congress. Biden’s handling of the economy is widely unpopular with Americans. A poll last week by Harvard University’s Center for American Political Studies and Harris Insights & Analytics found only 32% of registered voters approved of Biden’s handling of the economy and 28% that he has lowered inflation since he took office.
A large number
99.7% is how much the national average price per gallon has risen since Biden took office, according to AAA.
Viral Saturday Tweet, Biden attacked the companies that run gas stations: “Lower the price you’re charging at the pump to reflect the cost you’re paying for the product. And do it now.” Many — including billionaire Amazon founder Jeff Bezos — criticized Biden for misrepresenting a situation where gas stations set prices largely based on market conditions. Criticized Bezos responded Biden tweeted, “Oh. Inflation is too important an issue for the White House to keep making statements like this. It’s either a direct misdirection or a profound misunderstanding of basic market dynamics. Bezos, whose $139.2 billion fortune makes him the world’s third-richest person. Forbes’ calculations, has frequently clashed with the Biden administration over its economic policies.
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