Is Price Gouging The Root Cause of High Gas Prices?
Summary from the AllSides News Team
President Joe Biden and his administration are taking actions to prevent oil companies from price gouging, but is that truly the root of inflated gas prices?
The price of gas has been steadily increasing since the low of $1.77 a gallon was recorded at the start of the COVID-19 pandemic in April 2020. When consumers phased back into their regular habits, some analysts found that the available international supply of oil couldn't keep pace with the spike in demand. The price of crude oil, which changes based on worldwide supply and demand, accounts for nearly 70% of the price that Americans pay at the gas pump. The global crude oil supply was further disrupted when a multitude of nations placed sanctions on Russian oil to combat Vladimir Putin's ongoing invasion of Ukraine. The Biden administration has attempted some short-term solutions, such as releasing 80 million barrels of oil from the national petroleum stockpile and possibly pausing the federal gas tax.
With high gas prices likely to continue into the fall, Biden has pointed fingers at Big Oil companies for exploiting gas prices. Democratic lawmakers have promoted the Consumer Fuel Price Gouging Prevention Act, but the legislation is stalled in the Senate. Some left-rated voices have criticized Republican lawmakers for "actively" mobilizing against the proposal, which they believe makes them "chief defenders" of "Big Oil profiteering" and "price gouging." Conservative voices often blamed the Biden administration for not promoting domestic oil production to fit its agenda of transitioning away from fossil fuels. Some right-rated outlets framed higher taxation of Big Oil companies as bad ideas that would disincentivize domestic production and keep prices high.
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