FX.co ★ US gas prices hit record high

Rising gas prices could pose a serious challenge to US President Joe Biden. Moreover, US citizens may voice their discontent with high energy prices and vote for the resignation of the government.

Americans have been deeply hurt by soaring gasoline prices. If gas prices skyrocket, it will add fuel to the fire. US voters will become indignant and blame the president for his incompetence. Experts believe that natural gas prices jumped when Biden tried to fight record gasoline prices. Notably, gas prices hit an all-time high in more than a decade. This has led to increased costs in most sectors from heating houses and cooking to production of chemicals and fertilizers.

Moreover, soaring gas prices will cause a sharp rise in inflation. At the same time, the Biden administration has little leverage to lower the cost of gas in contrast to oil prices. It was reported in early May that US gas prices increased to $8.653 per million British thermal units (MMBTU), i.e. about $310 per thousand cubic meters.