Gas prices have skyrocketed under Democrat President Joe Biden and analysts are warning Americans that their forecasts show that prices are going to keep surging for at least another several weeks.
“The national gas price average has increased 40% since the start of the year, from $2.25 on January 1 to $3.13 today,” AAA reported on Tuesday. “Moreover, it is not stopping there. Motorists can expect gas prices to increase another 10–20 cents through the end of August, bringing the national average well over $3.25 this summer.”
Jeanette McGee, AAA spokesperson, said that the surge in costs are in part due to negotiations falling through with OPEC, adding, “As a result, crude prices are set to surge to a seven year-high.”
The report added:
The last time crude was more than $76.40 and the national average gas price was at $3.25 was November and October 2014, respectively. Prices for crude will exceed this threshold as early as today and gas prices will follow suit in coming weeks, paving the way for a very expensive peak driving season.
The latest weekly report from the Energy Information Administration shows that gasoline demand remains robust at 9.1 million b/d, despite a weekly decrease. EIA reports that gasoline stocks increased by 1.5 million bbl to 241 million bbl last week. Since last Monday, the national average increased four cents and is more expensive on the month (+8 cents) and the year (+95 cents).
AAA warned that Tropical Storm Elsa could cause disruptions to crude and gasoline production throughout the region.
White House Press Secretary Jen Psaki downplayed questions from reporters about surging fuel costs as she also dismissed the notion that the prices would hurt the Democrat Party in the midterms.
“On oil prices, you’ve alluded a couple of times today to the impact on what actual gas price is, I think it’s over $3 a gallon now, huge amount of travel over the holiday weekend,” a reporter said to Psaki on Tuesday. “What is the president doing for regular Americans to try to keep the gas prices down, whether it be engaging with OPEC? But also is the president considering releasing from the strategic reserve or are there other steps that the president can take to address what is obviously a painful situation and how much do you guys worry on his behalf that it will become a political issue that could be damaging to the president and his party in the coming election?”
“In 18 months, 17 months? Okay,” Psaki responded. “So I would say first, Mike, that the president wants Americans to have access to affordable and reliable energy, including at the pump. And so that’s why our team is constantly monitoring gas prices and directly communicating with OPEC parties to get to a deal and allow proposed production increases to move forward. And the reason I’ve referenced it so many times is because 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. 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. That’s one of the core reasons why the president was opposed, vehemently opposed, to a gas tax and any tax on vehicle mileage because he felt that would fall on the backs of Americans and that was a bottom line red line for him. In terms of additional considerations, I just don’t have anything to preview for you.”