Biden urges investigation into ‘illegal activity’ that may be causing spike in gas prices
Joe Biden said Wednesday his administration is taking steps to crack down on illegal activity that might be contributing to a rise in gas prices.
Biden announced that the National Economic Council has asked the Federal Trade Commission to use “every available tool” to monitor the U.S. gasoline market and look for any illegal activity that might be causing gas prices to jump while the cost of a barrel of oil is going down.
“That’s not what you’d expect in a competitive market,” Biden said from the White House. “I want to make sure that nothing stands in the way of oil price declines leading to lower prices for consumers.”
The administration’s actions come as gas prices have jumped more than energy prices over the past year. The price of gas has jumped 42%, while energy has risen 24%, according to the Labor Department. The average gas price in January was $2.326, almost a dollar less than what the average gas price was last month.
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According to AAA, the average price of gas as of Wednesday is $3.185. The national average is expected to remain above $3 for the rest of summer, AAA said last week.
Overall consumer prices have been rising over the past several months, which Biden and his administration has said is a temporary result due to recovery from the coronavirus pandemic. Consumer prices rose 4.3% in the 12 months ending in July, according to a Bureau of Labor Statics report published Wednesday.
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Earlier Wednesday, National Security Adviser Jake Sullivan urged oil-producing countries that make up OPEC to increase production, citing the need for reliable and stable global energy markets amid the coronavirus pandemic.
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