Russian President Vladimir Putin attends the launching ceremony of the Gazprom's Amur Gas Processing ... [+]
If you've headed to the pump to fill up your car, you've likely been met with price shock! Americans are experiencing the highest gasoline prices on record, surpassing even the previous high from just before the 2008 financial crisis. This week, the national average for a gallon of gasoline is now above $4.
The White House on Wednesday attempted to cast the blame on Russian Federation President Vladimir Putin for the record high.
"For months Putin has been saber-rattling, and for months gas prices have been going up – up 75 cents since he began his military build-up. This is the #PutinPriceHike in action, and @POTUS is going to use every tool at his disposal to shield Americans from pain at the pump," tweeted Kate Bedingfield, White House communications director (@WHCommsDir).
Bedingfield's post on Twitter came just hours after President Joe Biden (@POTUS) also took to social media, tweeting, "This crisis is a stark reminder: To protect our economy over the long term, we need to become energy independent. It should motivate us to accelerate our transition to a clean energy future."
Reactions to the announcements were mixed.
"I think Americans can do something also. Cut back on unnecessary driving. Walk to the corner store or park instead of driving. Use public transit. This is, for Americans, a mostly a gouge by the oil companies. Show them they need us more than we them," posted @Sammie1863_.
Grant Stern of Occupy Democrats (@grantstern) tweeted, "If the #PutinPriceHike you're paying at the pump upsets you, the now you understand why we've been reporting on Russia so doggedly all of these years."
"If you go fill up your car or truck with gas and are surprised by the recent price hike. Blame the dictator Putin and his insane war killing women and children bombing hospitals and maternity wards. #PutinPriceHike," suggested former U.S. ambassador to Canada Bruce A. Heyman (@BruceAHeyman).
Yet, others suggested the White House's energy policies were really to blame for the now record high gasoline prices.
"White House defends Biden's #PutinPriceHike 'rebrand', dismisses need for American oil production," wrote conservative activist and filmmaker Dinesh D'Souza (@DineshDSouza).
@enik126 tweeted, "Canceling Keystone XL, restricting new permits for drilling on federal property, and regulating energy companies are not in fact tools he is using to shield us from the pain at the pump."
Activist Erin Brockovich (@ErinBrockovich) fired back suggesting the industry – not Biden or Putin – is actually to blame. She tweeted, "It's time to finally place the blame where it belongs - the fossil fuel industry and our addiction to their poison."
Is Russia To Blame?
According to AAA, Russia's unprovoked invasion of Ukraine is certainly causing pain at the pump.
"As the conflict between Russia and Ukraine continues, crude prices soar, leading to higher pump prices in the U.S. The national average for a gallon of gas is $4.06, a staggering 45 cents more than a week ago, 62 cents more than a month ago and $1.30 more than a year ago. The national average has not been this high since July 2008," AAA reported.
However, gas prices have been on the rise for weeks – long before Russia's invasion began. Lawmakers on both sides of the aisle have called for the Biden Administration to open up oil and gas drilling in the United States to lessen the nation's dependence on foreign oil. Republicans have been especially critical of Biden's policies, and urged him to lift his executive orders that canceled the Keystone XL pipeline from Canada, and also froze new oil and gas leases on federal lands.
How Much Russian Oil?
Russian oil currently only accounts for about 8 percent of U.S. oil imports and just 5 percent of Russia's crude oil exports. By contrast, Europe depends heavily on Russian oil, and it now accounts for a third of its total crude imports.
Moreover, the U.S. now produces most of its crude oil domestically, and of the imports, the bulk comes from Canada and Mexico. As the U.S. gets so little oil from Russia, the impact on Moscow will be minimal – which makes the #PutinPriceHike rather suspect to say the least.
"It's disingenuous to lay all the blame on Putin and the Whitehouse knows this," said Dr. Charles N. Steele, associate professor and chairman in the Department of Economics, Business, and Accounting at Hillsdale College. "They acknowledged before the invasion that gas prices were rapidly increasing."
Russia's invasion and subsequent sanctions certainly contribute to the rising gas prices, but that is really only a contributing factor.
"There are two primary causes of increasing gasoline prices," added Steele. "First, there is a general inflation caused by the recent expansion of the money supply and the enormous increases in government spending. Second, the Biden administration has reduced U.S. petroleum and natural gas production and investment by reducing drilling and fracking, and also by blocking projects such as the Keystone XL pipeline. The Biden administration has restricted supplies and pursued inflationary policies, and that's the fundamental reason for record high gas prices."
In addition, the issue of record highs is also being debated.
As industry analysts have noted – even with a gallon of gas costing on average $4.19, it still isn't at a record once inflation is factored in. Gas prices would need to hit $5.25 per gallon to be a true record high, but that might be just days away.
