Biden Can Lower Gasoline Prices Now

Biden Can Lower Gasoline Prices Now

On Saturday, as Americans were preparing for Independence Day celebrations, President Biden tweeted: “My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril. Bring down the price you are charging at the pump to reflect the cost you’re paying for the product. And do it now.”

The bad news: gasoline prices won’t go down with President Biden’s tweets. The good news: the President could reduce gasoline prices if he changed his policies.

Through executive orders and rules from his agencies, President Biden has inhibited oil and natural gas from being produced and refined in the United States, resulting in oil prices over $105 per barrel.

This can be reversed as fast as it was put into place. By announcing a new policy focused on increasing rather than decreasing American energy production, President Biden could change expectations about the direction of U.S. energy production, resulting in an immediate decline in the price of oil. Prices are set on expectations of future production, not on present production.

That’s why oil prices rise when a hurricane is forecast in the Gulf of Mexico, before one single rig has been harmed by the