Democrats Stand By As Energy Costs Surge

KEY TAKEAWAYS

• American families face staggering energy costs this winter, feeling the pinch as they gas up vehicles and heat their homes.
• Energy prices overall were 27% higher in January than they were one year earlier. Electricity prices have jumped 10.7% from this time last year, especially affecting households using electricity as their main heating source. Gas prices have soared 40% since January 2021.
• Democrats in Congress feign concern with the high prices families are paying. But they spent much of 2021 pushing a radical Green New Deal agenda that would drive prices even higher.

American families are facing staggering energy prices this winter, feeling the pinch as they gas up vehicles and heat their homes. Democrats are responding by pointing fingers rather than reversing the failed policies that created this bleak situation.

Consumer Prices and Energy Costs Surge Since Last Year

Americans are being squeezed by higher prices across the board. Consumer prices in January were up 7.5% from one year ago. Early last year, economists on the left and right warned that Democrats’ reckless spending could fuel soaring inflation. Democrats ignored the alarm bells and poured $1.9 trillion into the economy, fueling the soaring inflation we’re seeing. Now they want to spend trillions of dollars more.

Families are facing especially steep energy costs every time they pull into a gas station, flip on the light switch, or turn up their thermostat. The Labor Department recently reported that energy costs overall were 27% higher in January than they were one year earlier. Energy prices have risen every month since May 2021, leaving consumers wondering when they can expect some relief. American households have seen a 10.7% jump in electricity prices from this time last year, particularly harming the 40% of homes that use electricity as their main heating source. Prices jumped 4.2% from December to January alone. Gasoline prices have soared 40% since January 2021.

Democrats are desperate for political cover from the fallout from their failed policies. One “solution” being pushed by a group of Senate Democrats would be to stop collecting federal excise taxes on gasoline through 2022. The federal excise tax on gasoline is 18.3 cents per gallon, which works out to about just 5% of the total cost for an average gallon of gas.

Setting aside concerns with the ability of the proposal to save consumers money, the largest factor determining gas prices is the price of crude oil. Instead of proposing policies to boost domestic oil production and increase supply, President Biden made clear he would pursue the radical left’s priorities on the first day of his administration, when he revoked the presidential permit for the Keystone XL pipeline. Days later he moved to prohibit new oil and gas leases on public lands and waters. Meanwhile, the Biden administration has actively called on OPEC and Russia to produce more oil.

Democrats in Congress feign concern with the high prices families are paying, but they spent much of 2021 pushing a radical Green New Deal agenda that ranges from a natural gas tax to more fees on energy producers. In another misguided “solution,” Democrats are pitching massive government payments as a way to offset the new higher costs. The left says it’s worried about expensive energy costs, yet the same Democrats have supported cap and trade policies and carbon pricing schemes that are designed to raise energy prices.

Democrats have shown that they aren’t serious about any real solutions that would actually address energy costs. In the fall, as gas prices rose and pressure mounted, the president announced the release of 50 million barrels of oil from the Strategic Petroleum Reserve – about two and a half days of U.S. consumption. Democrats then crowed about a paltry two-cent drop in the average price of a gallon of gasoline. Prices are back up since then. Crude oil is expected to top $100 a barrel. At least one report is predicting gasoline prices could reach $4.00 per gallon by this summer. Still, Senate Democrats have said they’ll “pivot” back to their reckless tax and spending spree, which will only add to inflation.

American families are desperate for relief from crushing prices. Republicans are calling for more affordable and reliable American energy to help lower costs for consumers, and Democrats should join these efforts.