Higher fuel prices, as well as rising inflation, are not helping Biden’s popularity. Especially in the run-up to Thanksgiving Thursday, Americans are growing increasingly dissatisfied with high prices and a shortage of goods.
Under the pressure of grumbling, Biden took coordinated action with other big consumers. Countries such as China, Japan, India, South Korea and the United Kingdom will also release oil from their reserves. The United States announced that it will remove 50 million barrels of crude oil from American stocks. It will take some time, Biden says, but prices at the pump will eventually come down.
Biden described it as unacceptable for oil companies to charge the difference between wholesale and consumer prices. According to him, lower wholesale prices do not lead to lower prices at the pump. The president said a coordinated approach to oil reserves would help address supply shortages. Peak gasoline prices should end sooner than during previous peak periods.
While the US economy is recovering strongly from the Corona crisis, supply chain disruption and inflation with the start of the holiday season are cause for concern. “Mothers and fathers worry about whether there will be enough food for the holidays. Will we be able to give the children Christmas gifts in time?” Biden acknowledged that the price hike was “painful” for many.
The reason for high inflation is partly due to higher transportation costs. This increases costs and scarcity throughout the economy. Biden said the problems would be temporary. He says the frightening image of empty shelves at Christmas will not come true.
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