b'Does the President Control GA$ PRICE$?Turns out that U.S. presidents have very little control overthe price per gallon consumers pay at the pump.By Jeff Lenard February 28, 2024 But lets shift a few months earlier. After the Russian Vice President ofNACS Strategic(Editors note: This blog was originally published oninvasion of Ukraine in February, oil prices spiked as Initiatives February 3, 2021, and is regularly updated to reflectconcerns mounted over supply, especially because changes in the retail fueling market, including recordRussia is the worlds third-largest oil producer. gasoline prices.) At the time of the invasion, gas prices were about $3.60 a gallon. A week later, they were over $4. Lets start with a basic assumptionthat President Biden pulled out every tool at his disposal, we can all agree upon: Politicians and their announcing a record-breaking withdrawal from the political parties dont want to be affiliated with Strategic Petroleum Reserve. Yet, oil and gas prices high gas prices. continued to climb higher, topping $5 nationally in And we are seeing that right now, as the presidentialmid-June.primary season heats up and candidates cite highThe Administration claimed that its quick actions gas prices as something they will fix. helped reduce gas prices by 40 cents over what they Gas prices are the ultimate pocketbook issue thatwould have been, but thats pure speculation, just everyone talks about. Songs are written about them.like the Administrations pronouncements that gas You dont see that about eggs, bread or milk. Orstations, which only average 10-20 cents per gallon property taxes, for that matter. Quite simply votersin profit, somehow can significantly drop their prices. hate highor risinggas prices. Thats probably A later withdrawal from the SPR in September bare-the main reason that the federal gas tax hasntly moved the needle on prices. The releases, while budged since 1993 when it was increased to record breaking, cumulatively represented about two 18.4 cents per gallon. days of world oil supply. So given that every politician wants to take credit forSo, is it possible that presidents dont have much keeping gas prices in check, or better, lowering them,control over pricesand they shouldnt be praised and every one running against an incumbent wantsfor price drops or maligned for price increases? to pin blame on the person in charge, it makes sense(And, for that matter, they shouldnt malign the that politicians would do everything in their power toretailers who also are not the reason for rising prices keep gas prices low. Especially presidents. at https://www.convenience.org/Media/ So why are they so bad at it? conveniencecorner/Who-Makes-Money-Selling-Gas.)Actually, its not that theyre bad at it. Its that theyLets specifically focus on the spring transition to have very little control over it. Yes, policies andsummer-blend fuel. For two decades, NACS has legislation can certainly play a role, but gas pricescommunicated the issues that affect prices because are largely dictated by oil prices and oil prices arewithout an explanation, consumers and/or politicians dependent upon supply and demand. Presidentialtend to blame the convenience store as the place thats control is not as simple as what those posts suggestresponsible for their pain. And convenience stores sell on social media. 80% of the gas purchased in the US.The year 2022 was a perfect example. It was a mid- But its more complicated than that, and it begins term election year in which all 435 members of thearound the coldest time of the year. The first week of U.S. House of Representatives are elected, as well asFebruary is generally the lowest point of the season, one-third of the Senate. Everything hangs in the bal- but the spring transition generally leads to a shortage ance and the stakes couldnt be higher, exclaimedof product (see Changing Seasons, Changing Gas TV newscasters and commercials.Prices at https://www.convenience.org/Topics/Fuels/58 www.wpma.com / Spring 2024'