Along with many of the other consequences of the conflicts happening between Russia and Ukraine, the gas prices have risen in most parts of the world. In Colorado, the prices went from approximately $2.70 to $3.37. There are many different opinions about this, but the majority are very irritated.
During COVID, not a large amount of gas was consumed resulting in many workers leaving the gas industry. When the world went back to normal, people faced the issues of production lag.
“Because of the strength and the speed of our recovery (after the pandemic), demand for oil shot back up much faster than the supply,” President Biden said. “That’s why the cost of gas began to rise last year.”
The main reason for the rise in the gas prices is represented by the insufficiency of supplies. Just like when the supply is larger than the demand, the prices fall. The U.S. is currently both the largest producer and consumer.
On the other hand, during the last months of Trump’s administration, the oil prices rose by 32% as demand bounced back after the pandemic, whereas in the first three months of the Biden Administration the oil prices rose only 19%. That is why most people tend to blame president Biden for the high prices, when in fact it began a long time before his administration.
The stimulus money both presidents approved has some impact, but it’s not the main reason for the inflation. In reality, neither of the two presidents are responsible for the uncontrollable raise not only in America, but everywhere around the world.
“Our prices are rising because of Putin’s actions. There isn’t enough supply,” President Biden said.
After the war broke out in Ukraine, the President decided to cut the oil imported from Russia off the market which was no wonder the right thing to do given the current situation.
“This is a moment of consequence and peril for the world and pain at the pump for American families,” President Biden stated.
Moreover, Putin demands Europe to buy Russian gas by paying in rubles, Russian currency. While Russia will continue to supply natural gas around the world, nations will be expected to pay in rubles, which is a major contribution to the rise in price.
“The changes will only affect the currency of payment, which will be changed to Russian rubles,” Putin said.
Regarding this issue, President Biden continues to assure the nation that measures are taken in increasing the supplies by encouraging domestic production at the moment.
“I know gas prices are painful, I get it. My plan is going to help ease that pain today,” Biden said, referring to the surge in gas prices as “Putin’s price hike.”