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In recent days, senior White House officials have explored new ideas for responding to high gas prices and reconsidered some previously discarded ones, desperate to show that the administration is trying to deal with voters’ frustration with rising pump costs.
Biden officials are reconsidering whether the federal government can send discount cards to millions of American drivers to help them pay at gas stations – an idea they considered months ago before rejecting it. Assistants have found that the shortage in the US chip industry will make it difficult to produce enough discount cards, said two people familiar with the matter. White House officials also fear there will be no way to stop consumers from using them for purchases other than gasoline, according to another person familiar with the discussions. Even if the administration accepts the proposal, it is likely to require congressional approval and face great chances among lawmakers who are not worried about spending more money.
Biden aides have also considered in recent days a reference to the Defense Manufacturing Act for the relocation of diesel and other refined products if a localized shortage materializes, said two people familiar with the matter. Diesel prices have risen sharply, posing a serious threat to the country’s transport and shipping industries, although experts say the shortage seems unlikely for now.
The resurgence of brainstorming reflects how higher fuel costs have emerged as one of the Biden administration’s main political threats and a major obstacle to the economy as a whole. The White House has taken a number of steps to address the issue, such as a commitment to a historic release of national oil reserves and a letter to national refineries on Wednesday calling for more production and criticizing their profits. President Biden also sought to increase international production by boosting global oil producers and coordinating the release of national reserves with US allies.
But these measures do not seem to have helped significantly. The country’s average gas price rose above $ 5 a gallon for the first time this weekend, an increase of approximately 11% from last month alone, according to the AAA. (The average fell very slightly on both Thursday and Friday, but remains at $ 5.) Polls show widespread disappointment with rising prices, increasing the likelihood of voters punishing Democrats this fall and giving Republicans control of at least one Congress next year.
White House officials have tried to reconsider all potential reactions to federal policy. Officials have also discussed telling managers to cut or waive their gas taxes, said another person familiar with the internal administration’s discussions.
The United States is watching the gas tax as fuel prices rise
People who requested anonymity to discuss private conversations stressed that these measures are being studied in advance and no final decisions have been made.
Attempts to explore non-standard solutions for high energy prices reflect the lack of available solutions for the administration, as well as the extent of the challenge they pose. White House spokesmen said all options were on the table, but a White House official said the concession proposal – demanded by some Democrats in Congress – was unlikely to develop due to logistical difficulties. Critics also say the idea could backfire by further raising prices by boosting consumer demand.
Other proposals made by political experts include a halt to the Jones Act, which will reduce transport costs and make it cheaper to deliver petrol from the Gulf Coast to the East Coast, impose price controls and ban energy exports. USA. But all of these ideas have their political and practical downsides, with the Jones Act backed by influential union groups, and economists warn that any supply restrictions could exacerbate the problem. One man said the White House had also considered restrictions on fuel exports, an idea first reported Thursday by Bloomberg News.
“Not only is there no existing solution, but no one thinks there will be a convincing solution,” said an external economic adviser to the White House. “They’re fighting for a story, not an essence, because what are they really going to do?”
Inside Biden’s frustration with rising prices
On Wednesday, Biden defended his administration’s record, saying it was doing everything possible to reduce the cost to families – including the pump – in the face of huge winds.
“I am doing everything I can to blunt the rise in Putin’s gas price,” Biden said, referring to Russian President Vladimir Putin. “We will work to reduce gas and food prices. We can save family money and other things. ”
Rising gas prices have many factors, but have been exacerbated by Russia’s invasion of Ukraine and subsequent Western sanctions against the Kremlin, which have disrupted supplies from the world’s third-largest oil producer. Russian production has fallen by more than 1 million barrels a day due to export sanctions that complicate sales and import sanctions that harm production, according to Rory Johnston, an analyst at Commodity Context. The refineries needed to turn oil into gas and other products are stretched to their limits, with Russian refineries offline and refining capacity in the United States declining by about 5 percent, according to the Energy Information Administration.
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