This Company Just CALLED OUT Biden On Twitter!
(TheRedWire.com) – In June, gas broke an all-time high of $5.00 per gallon. On Wednesday, July 6, AAA said it fell to $4.78. Over the last six months, President Joe Biden has blamed the price increases on energy companies, Putin’s price hike, and gas station owners. Yet, he’s taken no responsibility for his green energy policies’ contribution to the inflated prices. On Saturday, July 2, the president again took a shot at oil companies and demanded that they lower prices immediately, as if they had the power to do it.
On Sunday, the US Oil and Gas Association responded in kind, exposing the lack of education around how the energy market works. So, what determines the price of gas at the pump? Crude oil accounts for nearly 60% of the cost of a gallon of gasoline and is the top driver of gas prices. On top of it are refining expenses and the cost of transporting the gas from the plant to the gas station.
Working on it Mr. President. In the meantime – have a Happy 4th and please make sure the WH intern who posted this tweet registers for Econ 101 for the fall semester… https://t.co/6yLpbDDRKc
— US Oil & Gas Association (@US_OGA) July 3, 2022
In the US six refineries closed during 2020, complicating matters, even though the remaining 129 refineries are operating at 95% capacity. So, if demand remains high and supply is tight, gas prices will remain nearly constant or rise. Gas stations only earn 1.4% profit on fuel sales, and in some cases, they lose money. During the pandemic, most suffered profit shortfalls.
As President Biden continues to emphasize that US energy is transitioning to renewable energies, energy analysts say there isn’t any incentive for oil companies to invest more money in drilling and refining.
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