It's September 23rd and the average price of gas nationally has dropped once again. The National average price for a gallon of regular gas now costs $3.68.
Why the drop in gas prices? Benchmark U.S. crude oil closed at $89.53 a barrel on September 22nd. That's a noticeable price drop from its high in March of 2022 of $123.70 or approximately 28% less.
In addition, when President Biden wrote a letter to the major U.S. oil companies on June 14th asking them to produce more and told them 'well above refinery profit margins are 'not acceptable', that led to a meeting with the major oil companies and the American Petroleum Institute (API).
The American Petroleum Institute and ExxonMobil responded promptly to the President's letter. They informed him in writing and gave him 10 meaningful policy actions his administration can take to alleviate high gas prices all while strengthening national security. Among the 10 ways were; approving critical energy infrastructure, increasing access to capital, and holding energy lease sales.
Without getting too political it seems to me that old-school letter writing to the major U.S. oil refineries had some impact on lower prices at the pump. The price of gas at the station I go to on Long Island is down about $1.05 a gallon since Memorial Day and that's for a brand-name gas such as Mobil. It went from $4.99 to $3.95 a gallon for unleaded regular. The cheapest price in my area on Long Island is $3.15 for Mobil.
Unfortunately in California which has the highest gas prices, the average there is $5.58 a gallon.
The good thing about that old-school letter was it prompted dialogue between the administration and the American refineries and a subsequent meeting followed.
Also of importance was on June 1st New York State joined Maryland, Georgia, and Connecticut and suspended the state's sales tax thru December 31st, 2022. That 16-cents-a-gallon reduction lasted a mere two days. That was a tease.
In addition, President Biden just returned from the Middle East and discussed with world leaders there getting oil from the region and pushed for OPEC to increase production. However, at the conclusion of President Biden’s visit last week that oil policy decisions would be dictated by market logic and with coalition agreement.
No doubt, Inflation is still a major real concern in the U.S. so much so that Federal Reserve recently raised interest rates by 0.75% twice this year. Thru August 2022, the rate of inflation is 8.3%. Word is SS recipients are on pace to get an 8.7% raise in January. We will know what the exact increase will be in October. Inflation thru July 2022 has been running at an 8.5% annual rate.
The President and the Democrats had been playing the blame game. That strategy is not working in the polls. It's clearly time to take action and come up with a well-thought-out strategy to deal with inflation, specifically lowering fuel prices. And they are finally making those efforts and are getting some slight and positive results.
If there are no noticeable results with regards to inflation, especially lowering fuel prices say come September, Democrats will have a hard time holding on to the House and Senate in November.
Simple economics and logic tell us that higher fuel prices for gas and especially diesel fuel are a big part of what is fueling inflation. It's not just Putin's price hike. It's this current administration pushing behind the scenes for green energy.
How many people you know can afford an electric car? What do you do with the gas-fueled car you're currently financing? Tell me, Mr. President, and keep it real.
I understand the importance of becoming energy independent and saving the planet. However, those holding offices have to realize we have to deal with now and what we can afford.
jameswritesbest (author) on August 14, 2020:
I do appreciate you taking the time to read my article and also for your most informative and detailed response. Be well & stay safe
CHRIS57 from Northern Germany on August 14, 2020:
You wrapped up the facts very clearly.
Looking at the mess from the outside, let me do some remarks on the US as a whole and the state of New York in particular.
It looks like the state of New York actually followed moreless the same restriction, distancing and lockdown measures that European countries have enacted. The result: Bending the curve, reducing the number of active cases. The relief is obvious. Daily deaths are small compared to Texas or Florida.
When NY peaked in daily new cases (somwhere around April 8th), the state had recorded 9.000 deaths. Today it is 32.000 deaths.
So even if you peak in new cases, the aftermath is horrible (3,5 times).
This is well within the range of what other countries on our planet registered, that had peaked and brought down fatalities.
You can do your own math and do this for the whole US. It will be a bit more complicated, because you have to subtract the states which are static (like NY) and do the multiplying.
My quick pick would be: US peaked on 20th of July. Death count 145.000. The states (today static) to be subtracted probably peaked combined beginning of May. (then 70.000 deaths).
My quick and dirty maths: 145.000 - 70.000 = 75.000.
Apply the multiplier 3,5 = 75.000 x 3,5 = 262.500
Add the already static states again: 262.500 + 70.000 = 332.500
Within a one year period after Covid19 outbreak the US will be very lucky if numbers are kept below 300.000.
Imho vaccination programs will not help enough. Here in Germany the early infected and recovered Covid-19 patients already lost their immunity (antibodies). Happened within 3 months. Hopefully vaccines do better than the virus itself did in creating immunity...