Will the Biden administration manage to cut down gasoline prices in the US?

2022-06-22 14:11:06 GMT (Economies.com)
Will the Biden administration manage to cut down gasoline prices in the US?

A gallon of gasoline in the US now costs $5, a record high, which worried the White House considerably as inflation overall hits 1981 highs. 

 

Analysts now believe the high prices constitute a genuine political challenge for the administration as it fails to present real solutions. 

 

Opponents of Biden accuse him of triggering higher gasoline prices by impeding oil pipelines and rigging operations, while obviously the Russian invasion of Ukraine played a major role in the crisis. 

 

The US government now expect gasoline prices to hold above $4 for the foreseeable future. 

 

To combat it, the administration is trying to take a slew of crucial measures. 

 

Emergency Steps 

 

President Biden already ordered the withdrawal of millions of barrels of the country's strategic reserves to support supplies. 

 

He extended his support for alternative energy sources such as solar and electric car usage. 

 

Now reports indicate Biden might issue a suspension of the gasoline federal tax valued at 18.4 cents per gallon. 

 

It's mostly viewed as a political move to calm down angry feelings in the opposition. 

 

Pressures

 

Seven major oil companies will convene with Biden tomorrow under pressure from the White House to control prices as they mark record profits. 

 

However analysts doubt the usefulness of such moves to control inflation in the near term. 

 
 
 
  Symbol Last Change Chg.%
1.0427
-0.0154
1.4550%
1.2096
-0.0176
1.4311%
19.698
-1.669
7.811%
108.022
0.605
0.563%
111.50
2.47
2.27%
1799.775
-29.770
1.627%
 
 
Live Forex Updates