Whitehouse Struggles to Lower Gas Prices Ahead of November Midterm Elections

Drivers hoping to get some relief at the pump may have to wait a little longer. Everyone from the Sunday driver to car dealerships is feeling the brunt of higher fuel costs. While this might seem like a good place for the federal government to step in, it’s not looking like that will happen before the midterm elections this fall.

Global Politics

Before you go and directly blame the current administration for the fuel prices, it’s critical to know that one of the largest drivers of gasoline prices deals with global issues. Policies and decisions made regarding domestic supplies won’t impact what’s happening on the earth’s stage.

The current war between Ukraine and Russia is wreaking havoc on the global fuel supply. Many point to the high gas prices in other countries to show that this is more than an American problem. Just like car dealerships are directly responsible for a shortage of new vehicles, American oil production doesn’t act alone.

The Rising Surge

Gas prices continue to set new records almost daily. We’re seeing prices nearly 50% higher than they were a year ago. That means some places are paying as much as $5 per gallon, if not more.

Even before the conflict started in Ukraine, the fuel supply wasn’t in a great spot. Compared to historical data, US fuel inventories were low. This mostly has to do with the lower production that occurred during the height of the COVID-19 pandemic. The Biden administration tried to stop prices from rising too high by releasing one million barrels a day over six months from the Strategic Petroleum Reserves.

Sadly, this release of barrels isn’t covering the need. Across the globe, around 100 million barrels are used per day. Pulling barrels from the Strategic Petroleum Reserves might have been the strongest card for our leaders to pull.

Seeking Help From Industry Leaders

To try and help keep gas prices down, the White House has been reaching out to oil industry leaders to find out what steps would help. These steps include reopening closed refineries, but that kind of plan is a long shot. Most companies don’t want to incur the costs of getting these plants back in action. Unless the government can put the money in to cover reopening refineries, there’s no way to force companies to make a move.

There are many that believe that many oil companies are taking advantage of the situation to increase profits. While many drivers are struggling to afford fuel, companies like ExxonMobil, Chevron, and ConocoPhillips are seeing record profits that are disproportional to the rise in raw material prices.

Where Do We Stand?

Whether you’re a daily driver or one of the struggling car dealerships out there, the cost of fuel plays a vital part in your daily budget. With so many factors at play and out of our control, it’s unclear what can be done. President Biden hasn’t eliminated the possibility of using export restrictions to ease the costs of fuel, but it’s not certain how much that would help.

Until things get under control, it’s important to recognize that this is a global problem and not just one that impacts people here at home, which means it may not be something we can solve on our own.