Democrats are preparing to take control of Congress in January after campaigning on promises to make life more affordable, but their ability to quickly lower gasoline and other energy prices may be limited, Louisiana Illuminator reports.
Energy costs have surged since the U.S. attacked Iran on Feb. 28, with gasoline averaging $3.98 per gallon, diesel reaching $6.16 and home heating oil averaging $6.14 per gallon, all significantly higher than a year ago.
Potential short-term solutions, including suspending federal fuel taxes, releasing oil from the Strategic Petroleum Reserve and easing restrictions on fuel supplies, have had limited effects. The federal gas tax, for example, accounts for only 18.4 cents per gallon, and suspending it would not guarantee savings for consumers.
The Strategic Petroleum Reserve has also fallen to 282 million barrels, its lowest level in 44 years, limiting the government’s ability to respond to supply disruptions. While Congress could influence electricity and utility costs through policies addressing grid planning and infrastructure, much of the regulation of electricity rates and home heating oil falls to state and local agencies.
One of the most significant opportunities for lowering oil prices would be ending the war with Iran, which has disrupted shipping through the Strait of Hormuz, a route that previously carried roughly 20% of the world’s oil supply. Democrats are considering using federal spending negotiations to pressure the Trump administration to end the conflict.
However, analysts caution that even a resolution to the war would not guarantee lower prices because global oil markets are influenced by numerous geopolitical and supply factors.
