Oil Prices Drop 20% but Gas Prices at the Pump Down Only 10%-What Gives?

Letter to the Editor:

In the Yonkers Rising issue of June 24th, columnist Eric Schoen lambastes President Joe Biden, writing the President is “waiting to decide if he will suspend the Federal gas tax.” I am sure that Eric is smart enough to realize that any President does not unilaterally control or set prices; in fact, before Mr. Schoen’s column was published, President Biden has in fact on June 21 called on for Congress to enact a gas tax holiday.”

The President also asked individual states to suspend their own gas taxes during that period, or seek ways to offer similar discounts.

Mr. Schoen also restated the lie that the President “stopped drilling when he came into office.”

Facts: “One year after announcing a halt to any new federal oil and gas leasing, Biden has outpaced Donald Trump in issuing drilling permits on public lands.”

“The oil industry can decide to produce more oil whenever it wants. In fact, the oil industry already possess more than 9,000 approved—but unused—drilling permits on federal lands.” (AmericanProgress.org)

“In the months leading up to the Covid-19 pandemic, U.S. oil production hit an all-time high of just below 13 million barrels per day (BPD). As the pandemic unfolded, demand collapsed, and production followed.

By May 2020, oil production had dropped by more than 3 million BPD to 9.7 million BPD (barrels per day)”. Forbes 03/11/2022

Please do not substitute opinions for facts.

Robert Kalfus, Yonkers

Editor’s Note: Preisdent Joe Biden Tweeted, “Oil prices have come down 20% from June highs, but prices at the pump have only come down half as much. That’s unacceptable. t’s time for oil and gas companies to pass along their lower costs to Americans.”

We agree.