Across the United States the average price for a gallon of gas is $4.52….
American’s see this everyday when they hear about the ‘Good’ economy…
Severin Borenstein, an economics professor at the University of California at Berkeley whose research focuses on energy pricing, said that although the prices are “coming as a real shock” for Americans, he was not surprised by the milestone, adding that “with high crude oil prices, constrained refineries, and strong demand as the economy comes back, it’s no surprise that we have hit these levels.”
Borenstein noted that rising gas prices are a “substantial hardship” for low-income drivers particularly, adding to a list of economic challenges, including medical costs and rising rents.
President Biden has sought to address the issue, saying in recent days that inflation is among his top priorities — though he’s juggling a variety of crises, including a baby formula shortage, the aftermath of the country’s latest racist mass shooting, and Russia’s war on Ukraine.
Borenstein said that while oil prices are hard to predict, oil futures markets indicate that the next year could see lower prices. In the meantime, he said, policymakers “should try to explain what is going on rather than create convenient scapegoats or push their own energy agendas.”
Muehlegger added that policymakers have few options available to lower prices in the short term, even though some have tried; he noted that gas taxes have been cut in some states and that House Democrats are pushing legislation to prohibit price gouging. But oil prices are largely driven by global supply and demand, limiting the effect of such efforts….