HOUSTON – Americans have paid more for their petrol and diesel at the pump on average during US President Donald Trump’s second term than they did under his Democratic predecessor, Joe Biden, according to the American Automobile Association (AAA).
Surging fuel prices are a major thorn in Trump’s side as midterm elections loom and the Republican Party looks to defend narrow majorities in both legislative chambers on Nov 3.
The price of a gallon of regular petrol has averaged US$3.472 (S$4.45) since Trump took office almost two years ago, edging out the US$3.471-per-gallon average for Biden’s term, according to data from the AAA.
Russia’s war in Ukraine, now in its fifth year, as well as the US-Israeli war with Iran, almost in its ninth month, have both squeezed global crude and fuel supplies and forced emergency oil releases in the US and Europe.
The war in Iran has spilt out across the Middle East, with much of the conflict centred around the Strait of Hormuz, through which around a fifth of global oil and gas supplies flowed before the war broke out in February.
“Once this conflict comes to an end, gas prices will drop drastically... Thanks to the exceptional work of the US military, more oil is now flowing out of the Persian Gulf than before the Iran conflict began,” said White House spokeswoman Taylor Rogers.
The seven-day moving average for Middle East oil exports including Hormuz flows and Gulf of Oman shipments as well as Red Sea shipments reached 24.6 million barrels per day in the week to Oct 18, according to Kpler, its highest level since the war broke out in late February, and surpassing pre-war levels.
Sticky inflation
Sticky inflation makes nominal price comparisons misleading, analysts said, with consumer expectations for inflation over the next year nudged up to 4.7% from 4.6% in September, a survey showed in October.
Twelve-month inflation expectations have surged from 3.4% in February before the US-Israeli war with Iran started.
“Adjusting for inflation puts this into context as the value of the dollar continues to impact prices over the longer run. Americans are still not paying record amounts of their income on filling up their tanks,” said Patrick De Haan, head of petroleum analysis at GasBuddy, on average fuel prices under Trump surpassing those under Biden.
Trump’s approval rating fell to a record low in October as Americans worried about high petrol prices, according to a Reuters/Ipsos poll published on Oct 19.
Some 31% of Americans approve of Trump’s performance in office, down a percentage point from two weeks earlier and the lowest level in either of his presidential terms, the four-day poll showed.
Just 23% of adults polled nationwide approve of his handling of the economy.
Prices for diesel, the fuel that powers the global economy from agriculture and heavy industry to shipping, have also surpassed Biden’s national average under Trump, at US$4.343 a gallon compared with US$4.078 a gallon.
US diesel hit a record high on Sept 22 at US$6.523 a gallon. REUTERS