On Wednesday, oil executives testified in front of the US Congress, defending themselves against accusations that they are exploiting Americans with high fuel costs, claiming that they are increasing energy output and that no single firm controls the price of gasoline.
Members of the Energy and Commerce Subcommittee on Oversight and Investigations of the United States House of Representatives quizzed firms on why gasoline prices have remained high despite lower crude oil prices.
Since Russia’s invasion of Ukraine in February and after Western countries imposed sanctions on Moscow’s energy exports, gasoline prices in the United States have risen dramatically. According to the AAA motorist club, gas prices peaked at $4.33 per gallon before inflation on March 11 and have since fallen approximately 4% to $4.16 per gallon.
In the same time period, U.S. gasoline futures have dropped more than 7 percent to $3.07 per gallon, while worldwide oil prices have declined more than 9 percentage to around $102.11 per barrel.
Invasion of Ukraine by Russia ‘has further decreased the world’s oil supply as more and more corporations are afraid to buy Russian oil – and rightly so,’ said Democratic subcommittee chairwoman Diana DeGette. ‘However, if the price of gas is determined by the worldwide market, why is oil falling in price while the price at the pump remains around record highs?’
Post Your Comments