Published on June 1, 2024, 12:39 am

In the wake of multiple attempts by the Biden administration to limit fossil fuel development and production, various Democrats are expressing concern over rising gas prices, particularly with the fast-approaching 2024 elections. These sentiments come from a group of 23 Senate Democrats, notable figures among them being Senate Majority Leader Chuck Schumer, Sens. Elizabeth Warren, and Bob Casey.

These political figures issued a letter to Attorney General Merrick Garland on Thursday, urging him to investigate large energy corporations for purportedly colluding to inflate gas prices at the expense of American consumers. This accusation of companies conspiring to exploit customers is an old narrative being revived by Democrats as they nervously anticipate rising pump prices before 2024.

The senators stated in their letter that each tool should be utilized by the federal government to deter and prosecute collusion or price fixing incrementally increasing petrol, diesel fuel, heating oil costs which amounts to substantial detriment for nearly every American household and business sector. Therefore appealing to the Department of Justice (DOJ) for a detailed scrutiny of the oil industry with severe repercussions for those found guilty alongside putting an end to any illicit operations.

The communication cites ExxonMobil’s recent acquisition of Pioneer Natural Resources as an example. It also emboldens FTC allegations made against Chris Sheffield that he attempted organizing collusion between American and OPEC energy manufacturers intending inflated profits artificially.

However, Mr. Sheffield has vehemently rebuffed these accusations stating conclusively that never once did he indulge in any form of non-competitive behavior.

Apart from Senators Warren, Schumer and Casey; Democratic Senators Chris Murphy, Sheldon Whitehouse, Ed Markey from Massachusetts, Sherrod Brown from Ohio along with Bernie Sanders from Vermont were also signatories who put pen to paper on this pressing issue siding in favor of Biden’s flagship climate legislation-The Inflation Reduction Act while continually championing many facets geared towards fossil fuel use reduction across the U.S proposed by President Joe Biden’s administration.

Gas prices have spiked with the impending 2024 elections approaching. According to data from U.S. Energy Information Administration, in January, the national average per-gallon price of all formulations of gasoline was approximately $3.08; this number has surged to $3.60 by May.

Despite this rise, many respected economists and analysts, including the CEO of Chevron, have associated these price hikes partly due to Biden’s administration’s comprehensive climate agenda priced over a trillion dollars.

Banned from fossil fuel development across domestic landscapes coupled with imposing regulations on energy producers which has resulted in massive subsidy schemes favoring renewable energy sources such as wind and solar power are some milestones achieved by Biden administration that have invariably driven up prices around the world.

Even before we were hit by a global pandemic, in January 2020 American citizens paid an average amount of $2.55 for all types of gas as per figures from EIA (Energy Information Administration). These figures have since then skyrocketed considerably after November 2020-the month when President Biden got elected.

In their defense, Democrats argued that major energy companies were colluding back in 2022 when high gas prices were posing major inconvenience politically for Biden’s office and his fellow Democrats ahead of midterm elections.But contrary to their bleak pronouncements , FC Dallas branch investigators deduced that corporate collusion didn’t appear one of the driving factors propelling retail gas costs skywards; pointing out that energy producers actually lack significant control over the pricing structure set by fuel station operators.
Nevertheless it is worth taking note how these early developments will pan out leading up into much anticipated presidential elections later down the road.