GasBuddy analyst Patrick De Hann predicted that gas prices would continue to increase thanks to President Joe Biden’s policies.
On Monday, April 5, De Haan argued that the Biden administration is adding to the rise in gas prices and clarified how Biden’s energy policies have a “profound impact” on the oil and gas industry.
“The Biden administration is going to have a profound impact on the oil and gas sector. A lot of Americans, of course, saying, you know, this is what we’re in the midst of, when right now it’s really the economy that’s pushing prices higher,” de Haan told “Mornings with Maria” on Monday.
“But like you said, in the future, absolutely, the limitations on new drilling could eventually become an issue,” he added. “And, of course, now we have this massive infrastructure plan and how to pay for it.”
“And, of course, you know, the potential is there, the federal gas tax hasn’t been touched since 1993. So motorists really need to be on alert for rising gas prices this year,” said De Haan.
The average petrol price said De Haan, “certainly could rub up against $3 a gallon” in the coming weeks.
According to AAA, the national average is $2.87 per gallon as of Monday. Not only is this higher than the figures from 2020, when prices fell due to the loss of customer demand amid stay-at-home orders, but it’s also higher than it was at this stage in the calendar for any year since 2016.
Today’s national average is $2.87, which is more expensive on the week (+1 cent), month (+12 cents) and year (+94 cents). Because of the jump in demand, gasoline supplies tightened to the lowest level this year, and state gas prices averages saw major fluctuations. #gasprices pic.twitter.com/5negFfPOkw
— Marshall Doney (@AAACEODoney) April 5, 2021
The rise in gas prices is largely due to OPEC’s decision to maintain output cuts implemented last year, resulting in a major supply-and-demand imbalance.
As De Haan correctly pointed out, other considerations may keep Americans paying more at the pump as a direct result of the current administration.
Last week was a mixed bag at the pump: half of the states saw #gasprices rise ⬆️ while the other half saw declines ⬇️. More on that and what’s to come on today’s blog. https://t.co/svfpPU1THf pic.twitter.com/ojz8JL0D1y
— GasBuddy (@GasBuddy) April 5, 2021
Biden has temporarily suspended the issuance of oil and gas permits on federal lands and waters and canceled the Keystone XL oil pipeline project.
The administration could also consider raising the federal gas tax from 18.4 cents per gallon or imposing a “vehicle miles driven” tax.
The rising petrol prices put huge financial pressure on virtually all Americans, particularly low-income people.
In this tough recovering economy, the US needs to do whatever it can on the policy front to prevent petrol prices from increasing higher. Still, Biden appears to be more concerned with appeasing climate alarmists than with supporting the average American.