In the United States, the average price of gasoline is at an all-time high: gasoline costs less than a euro per liter.
WASHINGTON It’s all because of the war and the pandemic.
Americans refueling just outside of Washington seem to know why the price of gasoline in the U.S. right now is surprisingly expensive.
Gasoline in the United States is about 40 percent more expensive than a year ago. At present, the national average is just over four dollars per gallon, just under the euro per liter.
Although the price per liter is less than half of what a Finn has to shell out, the problem is really big, especially for low-income and transport professionals.
One of them has stopped at a gas station in Virginia Ahmed Hamid. Hamid, who works as a bus driver, says a tank of gasoline costs him up to $ 300 more than before.
– Because the price of bus tickets is constant, it is now really difficult to make a profit or save. I pay for my gasoline myself, Hamid says.
Interim election baton
Brainstorming Brookings Energy Policy Expert Samantha Gross recalls that the loose urban design of the United States, the lack of public transport and the meager railway network increase the dependence on motoring compared to Europe.
The price of gasoline is considered an important theme in the upcoming by-elections.
– I would like the people to understand that this is a world market, not a politics, Gross says.
It can be difficult right now in the crossfire of the news.
Republicans blame the president Joe Biden, which has frozen new drilling permits on public land. Democrats accuse oil companies of raising prices deliberately and distributing record dividends.
In reality, the freezing of drilling permits will not affect the amount of oil on the market for years to come. Obtaining a permit is only the first step in a multi-year process before drilling begins.
Likewise, the Democrats ’claim of deliberate price-fixing by oil companies is misleading. Oil companies always increase production during periods of high prices, but it takes time. Private oil companies are also anticipating a green transition and will not invest in production development as before.
Support for Ukraine but not for Biden
President Biden is trying to give the market time to adjust by freeing oil for the world market from U.S. oil reserves. Gross believes the means are the best ways to buy time for the oil market to adjust.
He agrees to refuel his flatbed truck John Hawkins.
– I want us to support Ukraine, but I want the price of gasoline to fall, inflation to fall, the price of food to fall, he says.