Thread: Gasoline at $4 Coming to a Pump Near You, Unfazed by Rising Tab
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Old 05-23-2012, 02:01 PM   #3500
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Quote:
Originally Posted by ThaVirus View Post
I had a friend tell me that gas prices can be affected by the president. He said that's why they always go down during election years. I argued against it because that's what I've been told. Whats the correct answer?
The POTUS (any POTUS) can do very, very little to influence gas prices. The price of gasoline is directly related to the price of crude, and POTUS can do very little to influence that.

Here are just a few examples:

1) Release and sell crude from the SPR. This increases the total amount of crude available (increases supply), which leads to reduced prices. But, only a nickel or so less from your wallet. The SPR has also never been released by any POTUS just to lower pricing, but in reaction to a supply disruption.

2) Along with congress, POTUS could suspend the federal tax on gas, which I believe is $0.18 or so per gallon. I believe this has been done before.

3) Start a war.
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