Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Politics

The rise and fall of gas prices in election years

by July 15, 2023
July 15, 2023
The rise and fall of gas prices in election years

Inflation is expected to remain a hot topic as the 2024 campaign season ramps up. The price of gasoline has consistently been an issue front and center in most recent elections.

‘Voters feel the impact of rising gasoline prices, perhaps more than any policy that a politician puts in place,’ said Phil Flynn, a senior market analyst at The PRICE Futures Group. ‘Politicians are very cognizant of oil prices. They’re cognizant of gasoline prices because voters care about them probably more than they do on most issues.’

During President George W. Bush’s first term in office, the average weekly price per gallon of gas was $1.59. That is the lowest price among recent presidential terms. In the 2002 midterm elections, Republicans gained seats in the House and Senate. They picked up even more in 2004 as President Bush was re-elected.

‘There’s a really strong inverse relationship between pump prices and approval ratings at a presidential level, and it hasn’t changed in four decades,’ Clearview Energy Partners Managing Director Kevin Book said.

Prices were higher and more volatile during President Bush’s second term. The average price was $2.77. Costs spiked in July 2008 to a weekly high of $4.17. By Election Day in November, prices had fallen to $2.46. The steep drop did little to help the Republican Party. Democrats added seats in the House and Senate, and Barack Obama was elected president.

According to the American Petroleum Institute, the amount of oil produced on federal lands plummeted while President Obama was in office.

‘When a president comes into office, they can set the stage as far as energy policies that signals to the market that can have a big impact on whether prices rise or fall,’ Flynn said. ‘The reality is the president can make policies that can make prices cheaper than they would have been.’

The average gas price during President Obama’s first term was $3.12. During the 2010 midterm elections, prices were on the rise as Republicans picked up more than 60 seats in the house. Two years later, 2012 marked the highest average price per gallon for any year during Obama’s presidency. Prices fell nearly 40 cents in the two months leading up to election day. Republicans lost eight seats in the house – and two in the senate as President Obama won re-election.

When President Trump came into office, he vowed to increase domestic oil production. During his single term, the U.S. recorded the lowest gas prices since President George W. Bush’s first term. The average cost was $2.57. The average price during President Biden’s partial term, has been more than one dollar higher per gallon with $3.60 as the average cost.

President Biden recently faced criticism over releasing oil from the strategic reserve ahead of the 2022 midterm elections. Prices fell from more than $5.00 in June to around $3.80 in November.

‘Presidents know that their popularity ratings can go up and down with gasoline prices, and they have done some major things to try to cool off prices before the election,’ Flynn said.

President Biden and Democrats have blamed Russia’s invasion of Ukraine for the high gas prices. They also said the release was necessary as the U.S. recovered from the global pandemic. Some energy experts argue the release was in fact strategic.

‘The Biden administration started releasing our strategic reserves as a way to bring energy prices down, which is clearly not what our strategic reserves are meant for. They’re meant for short-term supply disruptions to address short-term price spikes, not as a long-term market manipulation tool in the run-up to the election,’ said Anne Bradbury, CEO at American Exploration and Production Council.

Analysts also acknowledge while policy can influence gas prices, the November drop has more to do with timing.

‘More than likely, what’s happening, before the election in November, it’s less people are driving. Usually gasoline prices go up into Labor Day and then crash after Labor Day because everybody’s back in school, nobody’s traveling,’ Flynn said. ‘It’s a normal seasonal pattern.’

As the 2024 campaign heats up, seasonal patterns likely will not stop politicians from blaming each other for the rise and fall of gas prices.

‘People care an awful lot about the price at the pump, and they don’t care about a lot of the details,’ Book said. ‘It’s very hard to explain a price going up when you’re going to the polls.’

Bret Baier is the Chief Political Anchor of Fox News Channel, and the Anchor and Executive Editor of ‘Special Report with Bret Baier.’ He is the author of four presidential biographies, which tackle the critical issues of our times. His fifth biography, To Rescue the Constitution:George Washington and the Convention that Saved the American Experiment, will be published in 2023.

This post appeared first on FOX NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Nevada Organic Phosphate Inc.
next post
Iowa 6-week ‘fetal-heartbeat’ abortion ban signed into law: ‘To the smallest and most vulnerable among us’

Related Posts

Biden nominee who failed Senate confirmation still leading...

August 2, 2023

GOP 2024 contender blasts Biden on oil and...

June 29, 2023

Catholic groups pummel HHS secretary after heated exchange...

May 17, 2024

Biden quietly auctions off border wall parts to...

August 21, 2023

With Iowa caucuses closing in, Trump remains 2024...

October 31, 2023

New England fishermen fighting ‘government overreach’ hope to...

January 16, 2024

McConnell urges tighter border security in Biden’s budget...

October 25, 2023

Trump says Georgia indictment comes during ‘dark period’...

August 15, 2023

Trump meets with Ronna McDaniel – then calls...

February 7, 2024

Senate has only passed 3 out of 12...

December 27, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Run Your Stock Portfolio Like a Pro Sports Team

    • Leadership Rotation Could Confirm Corrective Phase

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

    • 1911 Gold Temporarily Suspends Operations at True North Complex due to Bissett Evacuation Order

    • Ontario Backs Down on Key Bill 5 Provisions, Echoes BC’s Mining Debate

    • Appeals Court Grants Trump Temporary Reprieve on Tariffs, “TACO” Taunts Gain Steam

    Categories

    • Business (1,223)
    • Investing (2,503)
    • Politics (3,699)
    • Stocks (1,614)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved