The Democrats are proposing to raise gas prices by $0.10, which would be a 34 percent increase in the price of gasoline at the pump. The Trump administration has said that they support lower gas prices and will work with Congress, who wants to implement similar legislation soon
The “Democrats for Higher Gas Prices near pennsylvania” is a political group that represents the Democratic Party. They are pushing for higher gas prices.
6:44 p.m. ET on March 11, 2022
On March 8, gasoline prices are shown at a Chevron gas station in Gustine, Calif.
Shutterstock photo by john g mabanglo
You had a feeling it was going to happen. While President Biden urges OPEC to pump more oil, Senate Democrats have threatened to slap a windfall gains tax on American oil corporations if they expand output. The inconsistency perfectly encapsulates progressive energy strategy.
Elizabeth Warren tweeted on Thursday, “Putin’s war is pushing up gas prices—and Big Oil firms are raking in historic profits.” She and 11 other Senate Democrats have sponsored legislation to levy the additional tax to combat what she refers to as “Big Oil profiteering.”
Colorado Senator Michael Bennet believes, “We need to hold huge oil and gas firms responsible” and “urgently need to invest in America’s renewable energy economy.” What is it that you are responsible for? Is it possible to make money in a legal business? Is it possible to meet clear customer demand?
Companies who produce or import at least 300,000 barrels of oil per day (or did so in 2019) would be required to pay a per-barrel tax equivalent to 50% of the difference between the current and average price between 2015 and 2019 (about $57 a barrel), according to the Senators’ proposal. They claim that smaller businesses would be excluded, preventing the megacorporations from raising prices without losing market share.
However, as the Federal Trade Commission has repeatedly discovered, oil firms do not determine pricing. It is determined by supply, demand, and market expectations. Crude prices plunged $20 a barrel on Thursday after the United Arab Emirates announced it would push other OPEC members to boost output. Consider how much lower oil prices would be if President Biden declared a moratorium on climate regulations that penalize fossil energy. Democrats, on the other hand, are threatening to penalize farmers for producing more.
Climate activists used to argue that dwindling oil revenues meant businesses ought to transition away from fossil fuels. That was presumably the point of last year’s ExxonMobil board fight. Asset managers should withdraw from oil corporations, according to liberals, since their earnings are doomed as the globe adopts renewable energy.
However, Democrats now claim that oil firms are too rich, blaming them for profiting from the restricted oil supply and higher prices that have resulted from political opposition to fossil fuels. “Oil firms never let a good crisis go to waste,” says Senator Sheldon Whitehouse of Rhode Island. Democrats aren’t any better.
The suggestion for a windfall tax demonstrates that Democrats do not want American corporations to produce more oil in order to lower fuel costs. They want petrol costs to rise so that skeptics would purchase more electric cars. They can’t say it outright because it would be politically suicide in an election year with the average petrol price at $4 a gallon, so they do it indirectly via taxes and regulations.
It’s hard to think President Biden would support the windfall tax, but you never know given the climate lobby’s clout in this administration.
While Joe Biden’s “State of the Union” speech expressed support for Ukraine, he did not recommend an increase in military budget since it would run against to his progressive agenda. CNP/Zuma/AFP/Getty Images/CNP/Zuma/AFP/Getty Images Mark Kelly’s composite
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The print issue of the March 12, 2022, was published.
Democrats for Higher Gas Prices is a political action committee that was formed in 2013. The goal of the group is to raise gas prices so that they are more affordable for everyone and to help the economy. Reference: gas prices congress.
Frequently Asked Questions
What caused high gas prices in 2008?
A: The oil market crashed in 2008 causing high gas prices.
Does the government influence gas prices?
A: The government has no control over gas prices. Theyre set by the market, and as such they are largely affected by global supply and demand.
Why are high gas prices bad for the economy?
A: High gas prices can be very bad for the economy. If a person has to spend more money on filling their car and buying gas, they have less money left over to buy other things or save. This is why it’s important that people find ways of lowering costs like driving less and investing in alternative energy sources
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