Biden Releases 50 Million Barrels of Oil From US Reserves – Florida Continues To Suffer Record High Gas Prices

Toby Hazlewood

The President's response to record inflation?

Drivers in Florida are painfully familiar with record gasoline prices seen at the pumps this year - the cost of gas topped $3.31 per gallon in October and it's now a rare thing to see prices lower than $3 anywhere.

Short-term shortages have pushed prices up - as happened when the Colonial Pipeline was hacked by Russian cybercriminals earlier this year forcing the gas pipeline to be temporarily closed.

The main issue causing prices to rise so significantly however, is the inflation gripping the US economy.

On November 23, President Biden took his latest step to try and tackle the issue - announcing the release of 50 million barrels of oil from the US strategic petroleum reserve. It was a move coordinated with various other nations, and while intended to reduce pressure on gas prices, the markets didn't react as expected. The price of oil actually increased following the announcement.

Meanwhile, websites tracking the lowest gas prices across Florida reflect that the situation is as bad as ever - in all major cities in the state, drivers are unlikely to find gas at less than $3 per gallon.

Holiday travelers having to deal with the cost

In spite of the cost, it's expected that the state's roads and airports will remain busy over the holiday period.

Floridians are being warned to expect a lot of traffic on the roads and the AAA predicts 48.3 million road journeys will be made over the holiday period, across the US - up by nearly 10% over the same weekend in 2020.

It seems that drivers have little choice but to pay the high prices if they want to spend time with friends and loved-ones this Thanksgiving.

Inflation and rising costs - a feature of 2021

The record inflation being seen in the US was unfortunately to be expected.

After the rapid printing of money by the federal government to bail out the economy during the pandemic, the lasting effect is that dollars in American pockets have less purchasing-power than they did previously. Money won't buy as many goods and services as it did, and prices go up.

US inflation hit a 31-year record high on November 23.

The $1 trillion Infrastructure Bill announced by the Biden administration earlier in November is intended to deal with supply chain issues and ease the flow of goods across the country which would lower inflation, but the money to fund the infrastructure works still needs to be funded from somewhere - the creation of money out of thin air will only increase inflation in the long term.

For now, it seems that Floridians have little choice but to accept that for now, gasoline and other goods will continue to remain at a painfully high price.

What's the most outrageous gas price that you've seen in Florida so far? Let me know in the comments section below.

Comments / 2

Published by

Commentary, Interpretation and Analysis of News and Current Affairs


More from Toby Hazlewood

Comments / 0