US gas prices: Huge support for Biden Russia ban despite ‘Putin spike’ in energy costs
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US gas prices have hit an all-time high at the pump.
American motorists are now paying an average of $4.173 a gallon when they fill up, according to AAA, previously known as the American Automobile Association.
The previous record, $4.10 a gallon, was set in July 2008 – adjusted for inflation that would be around $5.37 in 2022 prices.
AAA data shows that gas prices increased 10 cents in one day and 55 cents compared to last week.
The spike in prices comes as President Joe Biden announced a ban on all imports of Russian oil and gas as part of his administration’s efforts to “continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine”.
“I’m going to do everything I can to minimize Putin’s price hike here at home,” Mr Biden says, adding “Russian aggression is costing us all.”
Meanwhile, the price of Brent crude oil, the international benchmark, has jumped almost eight per cent on Tuesday to $132.79.
White House Press Secretary Jen Psaki said during a gaggle with reporters: “Americans are paying a higher price at the pump because of the actions of President Putin.”
“This is a Putin spike at the gas pump, not one prompted by our sanctions.”
Despite the price rises, one poll shows the move by Mr Biden enjoys the support of 79 per cent of Americans and even 72 per cent of Trump supporters.
Biden says renewables – not Russia – is the only solution to gas pump price woes
‘Americans have rallied to support the Ukrainian people and made it clear we will not be part of subsidising Putin’s war,’ Mr Biden says.
Louise Boyle, Senior Climate Correspondent, reports from New York.
Biden says renewables not Russia is the only solution to gas pump price woes
‘Americans have rallied to support the Ukrainian people and made it clear we will not be part of subsidizing Putin’s war,’ Mr Biden says
How quickly have gas prices risen in the US?
Oil and refined products analyst Patrick De Haan calls the numbers “absolutely astounding”, noting that the national average is now $4.20/gallon, with prices up 56.1c/gallon from a week ago, and up 73.3c/gallon from a month ago.
What is banned under Biden’s executive order?
Today’s Executive Order bans:
- The importation into the United States of Russian crude oil and certain petroleum products, liquefied natural gas, and coal. Last year, the US imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia and this step will deprive Russia of billions of dollars in revenues from US drivers and consumers annually.
- New US investment in Russia’s energy sector, which will ensure that American companies and American investors are not underwriting Vladimir Putin’s efforts to expand energy production inside Russia.
- Americans will also be prohibited from financing or enabling foreign companies that are making investments to produce energy in Russia.
US Chamber of Commerce applauds Biden move
\Martin Durbin, president of the US Chamber of Commerce’s Global Energy Institute, has released a statement supporting the Biden administration’s decision to ban Russian energy imports.
We applaud the administration for banning Russian energy imports. It’s time now for the administration to partner with domestic energy producers to leverage America’s ability to produce more oil and gas and focus on pro-growth policies to benefit our economy and the world’s security.
Schumer: America says ‘nyet’ to Russian oil and gas
Senate Majority Leader Chuck Schumer has tweeted out his reaction to the White House announcement of a ban on Russian energy imports.
“America is saying ‘nyet’ to Russian fossil fuels. By banning the import of Russian oil, coal, and gas into the US, @POTUS continues to hit Putin where it hurts.”
“This action sends a clear signal that Americans will not fund Putin’s unprovoked and illegal invasion of Ukraine.”
‘Putin spike at the gas pump’
White House Press Secretary Jen Psaki said during a gaggle with correspondents: “Americans are paying a higher price at the pump because of the actions of President Putin.”
“This is a Putin spike at the gas pump, not one prompted by our sanctions.”
Zelensky ‘thankful’ for Biden move on Russian oil and gas
Ukrainian President Volodymyr Zelensky has tweeted his thanks for the Biden administration’s move to ban the import of Russian oil and gas.
He wrote: “Thankful for US and @POTUS personal leadership in striking in the heart of Putin’s war machine and banning oil, gas and coal from US market. Encourage other countries and leaders to follow.”
Brent crude up 8 per cent
The price of oil has surged recently on worries global supplies will be upended by the war in Ukraine and its ramifications because Russia is one of the world’s largest producers.
After President Joe Biden announced the ban on imports of Russian oil, a barrel of US crude was 6.9 per cent higher at $127.61 per barrel. It got even higher a day before as worries rose about a possible ban, reaching $130.50.
Brent crude, the international standard, rose 7.8 per cent to $132.79.
Already high oil prices have pushed the average price of a gallon of gasoline in the country to a record high. Mr Biden said he hopes to limit the pain for Americans, but he acknowledged that the ban will increase gasoline prices.
“Defending freedom is going to cost us as well,” he said.
Mr Biden also said he understood many European allies may not be able to make similar moves, because they are much more dependent on Russian energy supplies. European nations have said they plan to reduce their reliance on Russia for their energy needs, but filling the void without crippling their economies will likely take some time.
The US ban on Russian oil imports is the latest move by governments and companies around the world to squeeze Russia’s finances following its attack on Ukraine. All the penalties raise questions about how high prices will go for oil, natural gas, wheat and other commodities where the region is a major producer. That’s, in turn, adding more pressure to the already high inflation sweeping the world, cranking up its hold on the global economy.
AP
‘Get ready for $6/gallon'
Fortune spoke with David Rundell, who served as an American diplomat for 30 years in Washington, Bahrain, Saudi Arabia, Syria, Tunisia, and the United Arab Emirates, who warns that the deteriorating state of diplomatic affairs with Saudi leaders will hit Americans in the wallet.
“Russia and Saudi Arabia are the world’s two largest oil exporters. If we had good relations with Saudi Arabia, they would have stepped in to help as they have done many times in the past,” said Rundell, who is currently a partner at Arabia Analytica, a consulting firm focused on the Middle East.
“But our relationship with Saudi leaders continues to worsen. So, get ready for $6 a gallon.”
ICYMI: Biden announces ban on Russian oil imports
The United States will ban imports of Russian petroleum products into American markets in hopes of choking off funds for Russian president Vladimir Putin’s invasion of Ukraine, US President Joe Biden said Tuesday.
“Today, I’m announcing the United State is targeting the main artery of Russia’s economy — we’re banning all imports of Russian oil and gas and energy,” said Mr Biden, who explained that the ban would mean Russian oil “will no longer be acceptable in US ports”.
Mr Biden said the ban would enable the American people to “deal another powerful blow” to Mr Putin’s “war machine”. He added that such a ban has “strong bipartisan support” and strong support from everyday Americans who’ve “rallied to support the Ukrainian people”.
Andrew Feinberg reports from Washington, DC.
Biden announces Russian oil ban and warns of ‘Putin’s price hike’ at gas pump
A ban on Russian oil imports would deal a significant blow to Russia’s government, which is heavily dependent on fossil fuel sales
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