A Michigan-based think tank has claimed that it now costs less to drive an internal combustion vehicle 100 miles than to charge up a comparably all-electric vehicle using home charging. Though this claim comes with a few caveats, starting with acknowledging that this only applies to “midpriced” vehicles based on the national average for fuel and electricity rates.
Despite the perpetual ebb and flow of fuel prices across the United States, you can reliably count on California having some of the highest per-gallon costs in the nation. While that’s not entirely the fault of energy companies – California’s high tax rate on just about everything is a major factor here – oil firms are indeed raking in unprecedented profits right now and the government would much rather you focus on that than any role it might have likewise played. To that effect, Governor Gavin Newsom has announced new financial penalties for corporations accused of price-gouging wherever fueling is concerned.
With the last several months delivering record-breaking fuel prices, as society endures what has undoubtedly been the largest spike in energy cost and inflation since the 1970s, everyone has been hoping to catch a break this summer. Some have even gotten theirs. While things are still looking exceptionally bleak in the long term, the United States appears to be enjoying a modest reprieve.
National fuel prices are currently averaging right around $5.00 per gallon in the United States. However, there are plenty of states with stations listing gasoline well above $6.00 per gallon with diesel being driven even higher. This has started to wreak havoc on the trucking industry, which is now seeing companies pausing shipments to renegotiate contracts, and infuriated consumers who remember a gallon of gas being $2.17 during the summer of 2020.
Earlier this year, Congress and the White House suggested suspending the federal fuel tax to alleviate the financial burden. But the notion was walked back, as prices were relatively low at the time (roughly $3.50 per gallon) and criticisms swelled that this simply exchanged one problem for another. Four months later and things are looking rather desperate, with the Biden administration revisiting the premise of pausing fuel tax to help soften the blow of record-breaking prices at the pump.
Last week, a group of Republican attorneys general decided to sue the Environmental Protection Agency (EPA) over its decision to reinstate the waiver allowing California to set its own limitations on exhaust gasses and zero-emission vehicle mandates that would exceed federal standards.
The agency approved the waiver after it had been eliminated as part of the Trump administration’s fuel rollback on the grounds that it would create a schism within the industry by forcing automakers to produce vehicles that catered to the Californian market at the expense of products that might be appreciated in other parts of the country. However, Joe Biden’s EPA sees things differently and has aligned itself with the California Air Resources Board (CARB) in giving the state more leeway to govern itself in regard to emissions policing.
The U.S. Environmental Protection Agency has opted to reinstate California’s ability to set tailpipe rules and zero-emission vehicle mandates that are more rigid than federal standards. After quarreling for years over the Trump administration’s decision to roll back Obama-era fueling standards deemed untenable, the Golden State now has the ability to once again make harder for its citizens by forcing them to purchase the kind of vehicles it feels they should be driving — rather than leaving it up to the individual that’s actually buying the car.
Though it might not matter at this point. While California effectively served as a defensive shield against proposed fueling rollbacks while Trump was in office, the Biden administration strategy is broadly in line with its agenda of making gasoline unappetizing to consumers to ensure a speedy transition to electric vehicles. California doesn’t even want people to have access to gas-powered lawn care equipment. The state has effectively served as a test case for Build Back Better since before the phrase passed through the lips of a single politician.
Fuel prices have, like most other things, become totally ridiculous. In the United States, the average rate for a gallon of gasoline has eclipsed $4.00 for the first time in a decade. Though what’s probably the most alarming is how quickly it happened. Plenty of Americans could still find fuel for under $2.00 a gallon in April of 2020, meaning we’ve seen prices effectively double within two years in the United States. Meanwhile, European nations more accustomed to lofty fuel bills have been sounding the warning bells (especially in regard to diesel) for months.
Despite the issue existing long before Russia invaded Ukraine, the war has become the de facto explanation among politicians for why you had to swap to less-fancy dog food and off-brand soda to keep the truck gassed up. This is also influencing the government’s response to how to handle the present fuel crisis, which looks as if it’ll be getting worse before it gets better. But let’s take a look at how we got here before we dive into what’s being done (or not done) about it.
President Joe Biden and Democratic lawmakers have suggested ending the federal gas tax until 2023 as a way to offset fuel prices that are nearing record levels and possibly appease some on-the-fence voters ahead of midterm elections. Senators Mark Kelly (D-AZ) and Maggie Hassan (D-NH) recently pitched the bill in Congress. While the White House has not made any official endorsements, it’s offered tacit support by saying it didn’t want to limit itself in terms of finding new ways of easing the financial burdens Americans are facing during a period of high inflation.
“Every tool is on the table to reduce prices,” White House assistant press secretary Emilie Simons said in regard to a possible gas tax holiday. “The president already announced an historic release of 50 million barrels from the Strategic Petroleum Reserve, and all options are on the table looking ahead.”
Unless you’ve spent the last twelve months locked inside your home, then you’re probably dreading the next trip to the gas station. The average price for a gallon of 87 octanes has reached $3.40 in the United States. That’s about 50 percent steeper than it was at the start of 2021 and undoubtedly more than you’re wanting to shell out today. Though one cannot ignore the dizzying rates being advertised outside of British “petroleum parlors” or France’s many “un bordel pour voitures.” Canadians are also forced to endure higher gasoline prices, as the government tends to stack the taxes a little higher and the U.S. dollar tends to be more valuable. At least for now.
All you need to know for the purposes of this article is that fuel prices are up and it’s influencing the economy in some pretty dramatic ways.
You’ll notice an intentional and obvious use of the word ‘some’ in that headline. At the COP26 global climate summit currently being held in Glasgow, a handful of automakers and two dozen countries committed to an agreement calling for the end of fossil fuel vehicles by 2040 or earlier.
Headline signatories include the likes of Ford, GM Volvo, and Mercedes – along with reps from places such as Canada, the U.K., and Sweden. Not everyone chose to jump on board, however, including a couple of major world powers and two of the planet’s largest car companies.
The California Air Resources Board (CARB) has decided that residential lawn equipment is a major problem. Claims have been made that the small engines found inside of the average leaf blower emit the same amount of smog-forming pollution in a single hour as a 2016 Toyota Camry could produce over a 1,100-mile drive.
Assertions like these have been used to forward Assembly Bill No. 1346, which requires the board to define and then pull the trigger on new regulations designed “to prohibit engine exhaust and evaporative emissions from new small off-road engines” by 2022. CARB then has to decide whether or not it can outright ban them, so they may be replaced by zero-emission equivalents after 2024. Considering how decent most electrified tools have grown to be, this doesn’t sound infeasible. But it’s another example of California’s obsessive hatred of consumers utilizing liquid fuel and bound to have major ramifications.
Prior to 1970, buying leaded gasoline in the United States was as normal as picking up a carton of eggs or relaxing in your asbestos-laden home. After 1970, the U.S. Congress had officially adopted the Clean Air Act created the Environmental Protection Agency (EPA), and the gradual phasing out of leaded fuel began. While many bemoaned the lackluster performance of the malaise-era automobiles that followed, the rules continued to inform how vehicle manufacturers operated on a global scale.
But leaded gasoline hung in there for longer than you might assume. Most Western nations (including the United States) didn’t totally phase out leaded gasoline intended for passenger vehicles until the 1990s. Central Asia took even longer and parts of the Middle East and Africa continued to offer lead additives well into the 2000s. However, the United Nations Environment Program announced that leaded gasoline had officially become extinct over the summer, with Algeria being the final country to deplete its now-banned supply.
On Tuesday, the Biden administration announced it would be suspending oil and gas leases issued in Alaska’s Arctic National Wildlife Refuge during the last days of the Trump administration. Bent on maintaining the United State’s energy independence, Donald Trump had moved to expand fossil fuel development in ways that would have been at odds with predecessor Barack Obama. But today’s White House represents a return to form, with an interest in supplanting traditional energy concerns with what it believes will be greener alternatives.
It’s bad news for the Alaskan state government, which had hoped to devote a subset of the region to rebuilding its oil industry by taking advantage of its vast reserves. But environmentalists and a subset of tribal representatives have praised the decision to prohibit development on protected lands. We expect consumers will have conflicting opinions, based largely upon how much they’re willing to pay at the pump.
With the Colonial Pipeline shut down due to last week’s ransom hacking, the Eastern United States has found itself running out of fuel. The line was shut down on Friday as a precaution and we’ve since learned that it’s not going to be reopened until this weekend — and maybe not even then.
While this has left some of us with fuel prices creeping aggressively toward $3 per gallon, other parts of the East Coast have seen panic buying and legitimate outages. But it’s hardly surprising when you consider the Colonial Pipeline is the country’s largest. Turning off the tap has ramifications and they’re manifesting all across the coast, though the situation appears to be substantially worse in southern states.
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