WASHINGTON, Dec 9: Good times for holidaymakers as the oil and gas prices are
plummeting in the US, and elsewhere too, coming in the midst of a steep inflation
that kicked up prices of everything under the sun. Anyway Thanksgiving passed
off profitably! Tanks were full! However, other things ruled high. Still Biden
can heave a sigh of relief!
For the last ten months the prices have been going down and it is below last
year's average, declining to $3.29 a gallon, and continues to fall. It could
be below $3 by Christmas, forecasts WP. This is happening all over the 50 States,
of course, with minor variations. A continued fall can eventually check inflation,
stabilising prices of other essential goods.
WSJ has given an example of a driver's weekly gas bill falling from as high
as $75 to about $30. Motorists and travellers are getting huge relief at a time
the economy is reeling under high inflation that has brought down Biden's rating.
Inflation kicked up prices of everything including food. Gas was the main culprit.That
had forced the hand of the Federal reserve to raise the rates steeply.
The covid rescue and stimulus plan costing trillions were a major contributing
factor in the US inflation and the President had been at the receiving end for
his reckless policies. Then came the student loan forgiveness plan that seeks
to cancel up to $20,000 for over 20 million borrowers which is hanging fire
due litigation. The Supreme Court is to decide on the legality of the waiver
next year only. The scheme was challenged by the Republicans in several lawsuits.
The prices of gasoline had shot up further following the Russian invasion of
Ukraine in February but now the covid shutdown in China has dampened the demand
greatly leading to the price fall. All this coupled with a likely recession
worldwide and higher intreerst rates imposed by central banks. A price cap now
imposed on Russian fuel by the US and Europe is also pulling down the prices
further. But OPEC holds sway over prices and can reverse the trend. It may not
comply with Biden's plea to raise the output.
