Gas Prices Up Around The World, Leading To Surge Of Memes And Iffy Explanations Of Why
The price of a gallon of gas is up around the world, inspiring a variety of memes complaining, griping and laughing about the difficulties brought on by the surging costs.
Not only does the higher price make people pay more at the pump, but it also contributes to inflation across the economy by raising the price of every good that needs to be transported using gas-powered vehicles, including pecans.
In the United States, President Joe Biden has proposed a 90-day suspension of the federal tax on gas, which is used to fund roads and infrastructure, in the hopes of decreasing the price just a little bit. Many, including Democrats in Congress, have criticized Biden for embracing the tax suspension, a policy that former President Barack Obama in 2008 called out as an empty political gesture.
The gas tax holiday looks unlikely to pass because Senator Joe Manchin and other Democrats oppose the bill. In a 50-50 Senate with filibuster rules, Biden can pass essentially nothing unless every Democrat and 10 Republicans are on board. Manchin has been criticized by some for his ties to the fossil fuel industry and obstruction of Biden’s agenda.
Biden and his administration have labeled the gas price increase “Putin’s Price Hike,” attributing the rise to Russia's war in Ukraine. Many on the other side of the aisle have countered Biden by falsely claiming that boosting domestic oil production and approving the Keystone XL pipeline would lower gas prices.
This is untrue because it would take years to get new American oil production on the line . Plus, oil is a global market, and the price is not set solely by what happens in the U.S. since events around the world impact it.
There is near universal agreement that the reason oil prices are up right now is Russia’s invasion of Ukraine, paired with an increase in demand following the COVID pandemic.
In 2020, the price of oil briefly turned negative, because fewer people were driving and traveling around the world and so there was almost no gas being bought. Some refineries that shut down or decreased capacity back then are still in the process of reopening. Now, it’s summer, lockdowns are over, more people are buying gas and the summer blend of gasoline is more expensive to make — so demand is up.
Supply is down, however, because Russian oil production is largely offline due to sanctions, jacking up the global price because instead of buying Russian oil, Europe is now trying to buy the same oil as the United States and everyone else.
Biden has made several diplomatic overtures to oil-producing nations like Iran, Saudi Arabia and Venezuela in a bid to get them to produce more and increase the supply in the global market, but so far there’s reportedly been little progress on this front.
Biden has also blamed oil corporations for “price gouging,” claiming that they are making money by jacking up the gas price. Many are skeptical about the truth of that theory, but Democrats seem to believe it, passing a bill in the House banning price gouging.
That bill will almost certainly not pass in the Senate (even if every Democrat votes for it) because the filibuster rule, which has continually frustrated Democrats since Biden took office, requires a majority of 60 votes to pass most bills.
The rise in gas prices comes amid an economic environment that is discouraging at best, with fears of a coming recession and rampant inflation. Additionally, there have been gasoline protests in the U.K. and even a planned gas boycott in the U.S. early next month.