Tuesday, November 9, 2010

Gas Prices Been Rising Since Obama became President

According to figures released by the Department of Energy, the average gas price nationally went up an unbelievable 25% since Obama took office in January 2009.

Reports from the Energy Information Administration, the cost of a gallon of gas surpassed the $3 mark in several parts of the country, and the national average is at $2.82. Overall, a gallon of gas is about $1 higher than the week of Jan. 26, 2009, when President Obama took office.

Just to note, on December 29th, the last report date for 2008, the national average price of unleaded gasoline was $1.642.

Ironically, the Democrats blamed Republicans for the high cost of gasoline because Democrats are successful to link Republicans to big oil companies. In fact, Democrats are responsible in preventing new sources of domestic petroleum from being developed after the recent oil spill. An example, Obama sign an executive order to block drilling in Utah as soon he became president. After the Gulf oil spill, he signed another executive order to ban off-shore drilling. Currently, Democrats control the Congress and the Presidency. Therefore, Democrats are silent of the high cost of gas because it is another tax from the American people.

As the economy falters, the Democrats continue to spend at a rapid pace. Currently, the government spent over 3 trillion dollars in 22 months. At the Fed, Chariman Ben Bernanki is monetizing the debt to temporary fix the problem, but risking higher inflation. The Fed Chairman is devaluing the dollar. It is causing the price of oil to rise, not because of demand, but because the value dollar is depreciating.

There is an indirect relationship between the falling dollar and price of oil. When the dollar is devalued the price of oil is expected to rise. With the announcement by the Saudi oil minister stating crude-oil price is expected to reach $90 per barrel and Obama ban on oil and gas exploration, it is possible for the price of gas to reach $5.00 per gallon.

Read story: Oil prices march on, New York crude at two-year high