Gas Prices See Sharp Spike In Past Month

In July, AAA reported that the national average price of a gallon of gas had risen by over 30 cents. This increase might make President Joe Biden’s 2024 presidential campaign plan more difficult.

In the last month, the national average price of a gallon of gas has risen from $3.53 to $3.83, as reported by AAA. The average price of gasoline has been increased to a level not seen since October 2022, according to AAA. As the 2024 election season heats up, these escalating costs might pose a political dilemma for Biden.

The average price of gasoline in August is higher than it was in August 2022, but it is lower than it was in August 2018. In June 2022, the average price of gasoline in the United States hit a record high of just over $5.01 per gallon, according to AAA.

By August 2022, the national average had dropped to just under $4.07 per gallon. AAA recorded the national average price at around $2.18 per gallon in the first week of August 2020, almost five months before Biden’s inauguration.

The proposed OPEC+ production cutbacks, spearheaded by Saudi Arabia and Russia, may further amplify the price increase seen in July. According to the U.S. Energy Information Administration, rising temperatures in the summer lead to higher energy use.

Republicans blasted Biden’s administration’s green programs, and average Americans felt the pinch in their wallets when prices skyrocketed last year. Biden’s 2024 campaign platform looks to center on Bidenomics. As election day draws near, soaring oil costs may complicate the plan.

In 2022, Biden released a large quantity of oil from the SPR to curb increasing gas prices before the midterm elections. Biden’s decision to tap into the SPR, which is only utilized in times of war or national emergency, may mean it takes decades to replenish pre-Biden levels.

Increased oil prices and poor market circumstances were cited as reasons for the Biden administration’s decision to delay SPR replenishment last week. Rising oil costs exacerbate the prospect of higher inflation in the United States. This is because rising energy prices often have a domino effect, raising expenses across the board for transportation and manufacturing.