Biden’s Policies Are Not the Cause of Rising Gas Prices
The Claim
President Biden’s new policies have led to a rise in gasoline prices across the United States.
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Emerging story
The issue of rising gas prices is now trending on social media, with many users attributing the cause to the actions of the Biden Administration. Drawing particular criticism has been the administration’s decision to revoke the permits issued by President Trump for the controversial Keystone XL Pipeline, as well as a ban on new fracking operations on federal land.
Misbar’s Analysis
Gas prices have been rising since the beginning of 2020, before Biden took office. There are a multitude of factors which affect gas prices in the U.S. Distribution and marketing, taxes which vary per state, refining costs, profit margins, and the cost of crude oil are all accounted for when pricing gasoline. Crude oil is the dominant variable in this equation, but it is highly subject to supply and demand. During the early months of the COVID-19 pandemic in 2020, demand was at an all-time-low and so crude oil prices plummeted. Now that vaccines are being distributed and many states have undone restrictions on travel, it is logical that the demand for gas has once again gone up.
According to experts, the Keystone XL Pipeline may not have ever even lowered gas prices for Americans in the long-term, an issue which has been speculated on for years. As of now the charts are following the typical yearly trend, and the cost of gas is nowhere near the high-point of the past decade.
Gas prices tend to follow a distinct pattern. They rise on average during the spring and summer, then lower during the fall and winter. So far in 2021, prices are following this pattern. The national average price for gas is currently $2.745 for regular grade, which is not extremely abnormal for this time of year. The price shown in Eric Trump’s tweet is misleading, as there is nowhere in the country where prices on average are nearly that high. Even in California, a state where taxes on gas are at their highest, the average price for gas is $3.71.
Misbar found this claim to be misleading due to the lack of definitive evidence that President Biden is directly responsible for the rise in gas prices. While it may be plausible that the new administration in some way contributed to this change, we believe it is important to recognize the various causes of gas price inflation.
