US gasoline prices are up 34.2% and fuel oil prices 74.2% from a year ago, while overall consumer prices have risen 3.7%. Voters head to the midterm elections as energy costs become a political issue. The Atlantic Council says shifting energy policy adds to those costs.
As voters head to the polls, gasoline has risen 34.2% and fuel oil 74.2% from a year ago, according to the October 14 Consumer Price Index. Overall prices for goods and services rose 3.7% over the last 12 months. Oilprice.com attributes the increases in large part to oil and gas trade disruptions stemming from the war in Iran.
Gasoline tops the Biden-era high
As of Monday, average US gasoline prices edged higher than at any point of Joe Biden's presidential term, according to a Politico analysis of AAA figures. That could pose a threat to the Trump administration and to incumbent gubernatorial and congressional candidates.
Business Insider reported on Monday that Americans likely won't feel relief at the pump in the near future, especially as more potential military action looms in Iran. It added that over the past few months, rising prices have outpaced pay increases.
Policy swings feed energy costs
Energy markets also face pressure from politicians. According to the Atlantic Council: "political volatility has become an energy cost". The think tank said each regime change over the last several federal election cycles has overhauled the energy progress of its predecessor.
The Atlantic Council also noted that technology-specific incentives tie project economics to the political durability of a particular credit, grant, mandate, or regulatory interpretation. Semafor's Tim McDonnell wrote that domestic drilling has put more of the supply-demand balance under US control but can't shield American consumers from global price turmoil.
Source: Oilprice.com
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