Gasoline Passes $5 per Gallon, Politicians Respond

By Christian Roselund

Over the weekend of 11-12 June, the average cost of gasoline in the United States exceeded $5 per gallon (EUR 1.26 per liter), 63% higher than a year ago and a record high for the nation. E&E News has described this $5/gallon price point as a “psychological barrier,” and this has major ramifications in the auto-dependent nation. Politicians from across the political spectrum have been responding to rising gas prices with various approaches.

While the number of Americans who cycle to work, school, or university has been rising sharply in recent years, more than ¾ of Americans commute by driving their own car. In 2020 only 8.5% of households did not have a single vehicle, and more than half had two or more.

For many Americans driving is not a choice: public transit in America is consistently low-quality, and outside mid-to-large cities buses and trains are too infrequent and unreliable to meet the needs of many residents. And many Americans take car dependence for granted, and as such rising gasoline prices are a threat to their budgets – which in many cases are already stretched by the high cost of housing and the cost of owning and maintaining an automobile.

The reaction by politicians has been very different depending on their political party. Democrats have blamed oil companies for profiteering on high oil prices and have introduced legislation to stop price gouging. This legislation has stalled in the U.S. Senate, which is unsurprising given that the Republicans hold 50 of 100 seats and Democratic Senator Joe Manchin typically sides with Republicans on energy issues. Democrats have also introduced a bill to allow up to 15% ethanol in gasoline blends and take measures which they say will reduce food costs.

Republicans have used the occasion of higher oil prices to blame Biden and the Democrats, claiming that they are limiting U.S. energy production. This is in sharp contrast to the Biden Administration’s calls for oil and gas companies to increase domestic production, including plans to fine companies that hold leases for not drilling.

Both economists and energy experts are clear that the current high oil and gas prices are driven by the slow resumption of oil supply following the reopening of travel restrictions, compounded by Russia’s invasion of Ukraine. And while President Biden has been clear about the latter factor as well, this has not shielded him from blame.

Read more:

News coverage: $5 at the pump: U.S. gasoline crosses historic mark (E&E News)

Analysis: Record gasoline prices drive energy, climate agenda (E&E News)