the price of the Gasoline in USA surpassed for the first time 5 dollars a gallon this Saturday, according to data from the American Automobile Association (AAA)which prolongs rising fuel costs that is driving the inflation.
The national average price of normal gasoline lead free rose $5,004 a gallon on June 11, up from $4,986 the day before, according to AAA data.
Los high gas prices they are a headache for the president Joe Biden and the Democrats, who will fight to maintain their reduced control of Congress in the mid-term elections to be held in November.
Lower gasoline prices, headache for Biden and Democrats
Biden has used numerous levers to try to cut pricesas the Record release of barrels from US strategic reservesthe exemption from the production standards of Gasoline of summer and the support to the main countries of the OPEC to increase production.
However, the fuel prices have skyrocketed around the world due to a combination of pick-up in demandsanctions to the large producer Russia after his invasion of Ukraine and a reduction in refining capacity.
However, road trips in USA have remained relatively strong, just a couple of percentage points below pre-pandemic levels, even as prices have risen. Gasoline.
Gasoline demand may start to decline in the United States
Even so, economists forecast that the demand for Gasoline could start to decline if prices remain above $5 a barrel for a sustained period.
“At the $5 level is where we could see strong demand destruction for Gasoline“, said Reid L’Ansonsenior economist at Kpler.
Adjusted for inflation, the mean of the Gasoline in USA remains about 8% below the June 2008 high of around $5.41 a gallon, according to figures from the US Department of Energy.
Consumer spending has so far remained resilient even with the inflation at its highest level in more than four decadeswith household balance sheets propped up by pandemic relief programs and a tight labor market that has fueled strong wage increases, especially for lower-income workers.
The high prices of Gasoline for drivers come at a time when major oil and gas companies are posting record profits. Shell presented a record quarter in May and Chevron Corp y BP They have recorded their best figures in a decade.
Other big companies, like Exxon Mobil y TotalEnergiesas well as independent operators of USAhave presented solid figures that have stimulated the repurchase of shares and the investment in dividends.