Politics at the pump

I like things simple, the government likes things complicated. Oil, is a highly over complicated matter. At the federal, level there are only 2 things that congress can do to effect prices at the pump. Directly they can raise or lower the taxes/fees associated with gas. Indirectly they can release oil reserves which in theory would always lower the price much like it did last time. The state government is about the same, lower gas prices in certain areas is often due to the rate at which gas is taxed. Other things that can affect prices, include, disasters, wars, foreign politics, threats, rate of current production, supply/demand, market politics, large investors, OPEC, EPA policy, etc. etc. because so many trillions of dollars are connected to oil. That being said, it's most likely a significant reduction in demand, directly related to a poor economy. Looking at eia.gov our gas consumption has declined since 2007, the 2 major decreases were 07-08 and again in 10-11. We know the economy hasn't made a major recovery, and judging from the most recent data we may see another massive reduction in consumption this year. Combined with decreased imports and increased local production, prices should be dropping significantly.

No it is not. No one has control over the price of oil. Even if the Democrats were to change policy that would encourage oil production, it would be years, possibly a decade before the investments in production today, resulted in lower prices in the future. Ironically, falling prices could be a very negative sign. It could mean that the economy is starting to stall out, and the demand for oil has stalled slightly, resulting in lower prices. It could also mean that the economy elsewhere in the world has stalled. Even the smallest dip in Europe, or Asia, at now even Latin America, could drop the price. Hope for the best, plan for the worst. But for sure, the Democrats had nothing to do with this. The only thing I'd like to point out is, all those crazy people saying the price of oil will just go up and up and up. Doesn't this prove them wrong? All the people saying OPEC controls the price of oil. Doesn't this prove them wrong?

Ours has not yet. But I heard it is supposed to. Whether it is a political issue, most likely but I am not sure. According to marketplace.org, it is because of a weak economy http://www.marketplace.org/topics/economy/why-are-gas-prices-falling

I haven't noticed our gas prices the last couple of weeks because I actually had enough to get around. I don't think I could honestly say that I wouldn't think he would do such a thing. I think he would do anything to get the election. And, no, I don't think it is just one heck of a coincidence.

Hi no it not Politics im in ny state and gas is still going open and this is a dem. state I wish gas would go down i have more money for food as of right nigth No more going out to movies or eating out at restuarant need the money for gas to get to work .ok have good day.

OpinionatedLady I live in the Los Angeles area so I don't see prices coming down. I have heard they are down in other parts of the country. I never understood what Obama was saying in the debate in telling Romney that a bad economy means low gas prices...

In politics there talk of the October suprise. In 2008 it was the financial melt down. I have noticed a lot of talk about President Obama favoring higher gas prices, this might be a way to dispel the attacks.

Oil prices are pretty difficult for any one government to control, the price largely depends on the cost of crude on the markets, and the markets gyrate depending on whether it is predicted there will be a tightening of supply, a possible war / flashpoint, a storm, etc. Government's can of course control how much petrol costs at the pump by the taxes they put on petrol - in the UK petrol is very expensive as there is so much tax on it. In the US, it is a good deal cheaper than most European countries because the tax is far less. So how much you pay does depend on the Government, but this is more a long-term thing, not something short term just before an election, where the Government can get oil prices down. That said, I do recall that the Clinton administration released some of the strategic US oil reserve a few months before the Presidential Election in November 2000. I can't remember what the reason was for doing so, but I do recall people querying this at the time, perhaps because they felt this might reduce the oil price before the election. I don't recall that it made much difference though, and Al Gore lost anyway! (seems that Romney could be Al Gore in reverse, he might win the overall vote but lose in the Electoral College!)

Well, this isn't a slam on Obama. I'm just paraphrasing what he said. Obama claimed that gas prices were lower under Bush's waning moments because the economy collapsed. So if the gas prices are falling again, that must mean the economy is in the crapper like that floating turd that just won't go down. So if Obama says Bush was bad and wrong and all that, then Romney's gonna have a hell of a mess on his hands and a great scapegoat for the next four years.

Gas prices are all politics here in Mexico. As most politicians get something off gas sales. it will never stop here. Even with the new president about to come in here.