Democrats Lies About Inflation Just Completely Blew Up In Their Face
(TruthandLiberty.com) – In the spring of 2021, after the country lifted COVID-19 restrictions, the United States started experiencing a fast-paced rise in gasoline prices as the economy began opening and people started traveling. The increase in gas prices began pushing up inflation, impacting virtually everything on the market, from groceries to homes and vacations. On Tuesday, May 13, the average cost of a gallon of gasoline hit a national high of $4.43 per gallon.
On the campaign trail in 2020, then-Democratic presidential candidate Joe Biden said he would work to end the use of fossil fuels. Recently, the president and his administration blamed everything but the administration’s environmental policies and other objectives that impact the cost of gasoline for the rising gas prices. Democrats in Congress looking for political cover are blaming the oil companies, openly saying they are price-gouging Americans. Yet, a new report by the Dallas Federal Reserve debunked that narrative and offered a fact-based reason for the high gas prices.
Democrats Allege Big Oil Price Gouging
Democrats continue to blame high gas prices on oil companies. Earlier in May, the Left introduced legislation they said would stop oil companies from gouging Americans’ pocketbooks, alleging the oil companies were making record profits and taking advantage of the Ukrainian war to make money.
Rep. Kim Schrier (D-WA) said gas and oil companies needed to be held accountable. On Thursday, May 12, House Speaker Nancy Pelosi (D-CA) said the House would vote soon on the Consumer Fuel Price Gouging Prevention Act.
Pelosi’s announcement came after the Dallas Federal Reserve released a report on Tuesday saying the oil and gas companies are not gouging consumers. It was a complete rebuttal of the Democratic allegations.
Dallas Federal Reserve Says There Is No Price Gouging
Senior Dallas Fed economists Garrett Golding and Lutz Kilian wrote oil and gas companies are not taking advantage of Americans. They explained the fuel makes its way to retailers via a complex supply chain before consumers fill their gas tanks. The economists said independent oil and gas companies with no refining capabilities produce 83% of oil. Therefore they don’t set the price of gasoline for the consumer.
Golding and Kilian explained oil prices made up 59% of gasoline costs in March 2022. The two economists said the high gas prices weren’t due to an oil shortage or high oil prices. Instead, they said events in the US retail gasoline market were beyond the control of oil and gas companies.
Some of the explanations for the retail cost of gas included gas stations recouping losses when gas prices were meager and stations hesitated to increase prices for some time. They may also be reluctant to lower prices as oil drops on fears that an event could trigger oil prices to rise and eat into their profits again.
Over the last several months, since Russia invaded Ukraine, crude oil indices have become volatile. At one point, a barrel of oil hit $130, although it has been as low as $93. Still, experts blame increased demand for fuel as travel increases, and people continue to struggle with higher retail prices.
So, you decide. Is big oil and gas responsible for the high gas prices, and will the Democrats’ bill, if passed, actually reduce the costs?
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