The Federal Reserve has been fighting an inflation problem for the last year, which President Joe Biden stated is now under control as a result of the much-heralded “Bideonomics.” However, gas prices in the United States are once again on the rise, providing a new obstacle.
The newest data provided by the AAA show that the national average gallon of petrol traded at $3.89 last week, its highest level since October 2022.
According to the Detroit Free Press, the pump price varies across the nation, with some of the greatest increases occurring in Midwestern regions while prices have averaged $5 and $5.07 per gallon in California and Washington, respectively.
According to the AAA numbers, Michigan’s average gasoline cost touched a new record for 2023 this week, reaching $3.76 per gallon for regular unleaded, a gain of nine cents from the previous week.
Mississippi has the cheapest petrol, with a gallon costing an average of $3.33.
New information from the Energy Information Administration, as quoted by the site, shows that gas consumption marginally declined from 8.94 million to 8.84 million barrels per day.
The increase in gas prices to a nine-month high comes following a 20 percent increase in global oil prices this summer as a result of Saudi Arabia and Russia cutting supplies, according to the Financial Times.
In addition to increasing concerns about the political repercussions for the Biden White House, the decision has resurrected forecasts that oil could reach $100 per barrel this year.
Former adviser to President George W. Bush and chairman of the Washington-based firm Rapidan Energy Group Bob McNally told the Financial Times that “the White House is in full-blown panic mode.”
“Any president who is in office faces danger when gas prices rise because of the effect on consumer confidence and the president’s popularity rating.”
The latest price hikes at the U.S. gas pumps include diesel, an essential input expense for the industrial and agricultural sectors, and they come as optimism grows that the Federal Reserve can orchestrate a gentle landing for the economy following months of interest rate increases to combat inflation.
As he prepares for his reelection campaign in 2024, Biden has been promoting his “Bidenomics” in recent weeks and noting a slowing of inflation and record job creation. The current spike in petrol prices will not add to his self-described story of economic competence.