President Biden thinks he has solved the nation’s problem with a lack of diesel fuel, and it is the most Biden move possible.
Under his proposed plan, diesel suppliers would be required to maintain a set amount on hand, thus limiting what they sell before being restocked. This comes with the mindset that this will stop severe shortages and price spikes.
He wants to open by forcing diesel vendors to take supplies off the market. In at least the short-term, diesel demand would soar as people would seek to top off any and all storage tanks and reserves.
Prices in the Northeast would skyrocket, as heating oil (simply untaxed diesel fuel) is already in short supply and high demand with how many people use it to heat their homes and businesses. With constrained pipelines, they don’t get the same fuel access as the rest of the nation.
Unfortunately for the President, this plan will spike the cost of diesel across the nation. Considering how dependent diesel semi-trucks across the nation are on this fuel type, this plan will do nothing but spike their costs, and the American consumer will be feeling that sting anytime they go to do something.
From filling up their cars with gasoline to buying a pack of smokes, taking the family out to dinner, or even going to a concert, prices will spike.
Energy Secretary Jennifer Granholm was asked about the exportation of US fuel to Europe as they try to lessen their dependence on Russian sources while she attended the COP27 conference in Egypt.
“We also want to make sure there’s enough fuel in the United States. It may not be a business choice that they make, but we’re asking, as the companies that are operating in America, to do what they are doing in other countries.”
As things sat in mid-November when she spoke at the conference, diesel was $1.58 more expensive than it was in 2021. $5.31 per gallon is not something many people can stomach, and many corporations have a hard time eating these costs.
In the Midwest, prices skyrocketed in July when Magellan Midstream Partners dramatically increased the minimum fuel levels held in their pipeline.
Currently, Europe is gearing up for its winter season. With a requirement across the entire European Union that tanks be filled to 80% to prepare for potential winter shortages, they have become increasingly reliant on US oil and gas production following the Russian invasion of Ukraine.
This means the amount being produced that American consumers have fair access to is significantly lower.
Those who use heating oil will be spending an average of $2,354 to heat their homes over the winter. This marks a 27% increase since 2021 and the highest price point in over 25 years.
Many simply cannot afford this, so they are turning to their fireplaces and wood stoves to help heat their homes. In extreme circumstances, people are using multiple space heaters and spiking their electric bills instead.
Should President Biden truly wants to fix the problem, it’s rather simple. Resume the oil drilling and resource stacking that was occurring under President Trump. We cannot be pushing more and more of our resources overseas while making Americans pay through the nose.
This isn’t what America was built on, and it is a dangerous message to the American people and the younger generation.
While it is great that these companies want to exploit the needs of Europe and it’s tremendous that Biden is happy to choke out the American taxpayer to help the people of Europe, he needs to remember who he is the President of, who put him there, and what his job is.
The time for charity is over. Especially when our own house is robbing Peter to pay Paul.