Playing the Blame Game as Gas Prices Continue to Rise
WASHINGTON — The national average for gasoline prices hovered near record highs Friday, a fact not lost in Washington, D.C., as Republicans and Democrats engaged in a blame game.
The Senate Commerce Committee’s ranking Republican called on the Federal Trade Commission to prove Biden administration accusations that recent spikes in gasoline prices are caused by misconduct among business leaders in the oil and gas industry.
Sen. Roger Wicker, R-Miss., made the demand in a letter to FTC Chair Lina Khan. Wicker says the price increases come from the war in Ukraine and the administration’s energy and budget policies.
The Biden administration’s “zealous agenda to reduce domestic oil and gas production” along with government spending have joined to increase both inflation and gas prices, he said. In addition, Russia’s invasion of Ukraine created market volatility that drove up crude oil prices, he said.
“However, some have proposed that the cause of rising gas prices is not these factors but rather market manipulation or some other type of collusion among members of the oil and gas industry,” Wicker’s letter said.
Wicker directed his letter to the FTC because it is investigating price-gouging allegations against oil companies at the request of the president.
Biden warned oil and gas companies as he announced sanctions against Russia not to exploit market volatility. A ban on Russian oil imports is part of the trade sanctions.
He repeated the warning in a tweet on Wednesday.
“Last time oil was $96 a barrel, gas was $3.62 a gallon. Now it’s $4.31,” Biden tweeted. “Oil and gas companies shouldn’t pad their profits at the expense of hard working Americans.”
Higher gas prices are cutting into Biden’s campaign promise to reduce the cost of living for working class Americans. Inflation that accompanies the price increases is weakening consumers’ ability to pay their bills.
Biden already ordered 30 million gallons of oil to be released from strategic reserves to dampen price increases.
Biden was joined in the concern by climate activists who accused oil companies of taking advantage of Russia’s war with Ukraine to raise gas prices for average consumers. They say the price increases are another example of why the United States needs to switch to more alternative fuels.
The Democratic National Committee said in a statement this week that “Republican lawmakers are lying about gas prices and America’s energy independence.”
In addition to the war in the Ukraine creating market volatility, the COVID-19 pandemic interrupted supply line deliveries of gas and oil, helping to drive up prices, the DNC says.
“Not only is the U.S. a bigger net exporter of energy under President Biden’s leadership, but there is zero evidence that the Biden administration’s policies have impacted gas prices or domestic energy production,” the DNC statement said.
The American Petroleum Institute responded to Biden’s tweet by saying gasoline price fluctuations reflect trends throughout the retail sector of the economy.
“It takes time for changing market conditions to work through the supply chain and for the price of crude oil to be widely reflected in the price we pay at local gas stations,” the trade group said in a statement.
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