Democrats have been trying to blame everybody and everything but Biden for inflation for many months. We have gone from “inflation will not be permanent” (or “inflation may be temporary”) to “inflation was good for” (or “inflation started under Trump”) to “it’s Putin’s price rise”. Biden and the Democrats accuse oil companies now of price gouging.
Biden tweeted on March 12th that Oil and Gas companies should not increase profits at the expense of hardworking Americans. ”
Pelosi (House Speaker) stated that although families are struggling to pay higher fuel prices than they used to, record profits have been made by oil and gas companies.
This might seem like a more effective strategy than blaming Putin. Big Oil has been a favorite bogeyman for leftists over the decades. This myth has been debunked by the Federal Reserve Bank of Dallas in a spectacular manner.
Garrett Golding (a senior economist at Dallas Fed) and Lutz Kilian (a blogger this week) explained that price gouging was not the reason for record-high gasoline prices. They point out that rent and credit card fees are also factors in setting gasoline prices.
Furthermore, 17% of the crude oil in the United States is controlled and produced by Big Oil. While 83% of U.S. crude oil is produced by independent oil companies and natural gas firms
They stated that gasoline station operators set retail prices based on their estimated acquisition costs for fuel delivery from local distributors and federal and state taxes rates. A markup also covers operating expenses like rent, delivery, and credit card fees. Oil companies cannot control gasoline prices as only 1 percent are owned by oil firms.
They explained that higher retail gasoline prices could be due to factors outside of the control of oil producers.