Tags: US | Powerless | Gasoline | Prices

Experts: US Is Powerless Over Surging Gasoline Prices

Tuesday, 28 February 2012 09:19 AM

The United States is basically powerless to combat rising gasoline prices, mainly because the Obama administration has already used two key measures that can work, experts say.

Gasoline prices may run up as high as $5 a gallon, and there are two things the Obama administration can do to ease the impact: dip into the Strategic Petroleum Reserve or stop speculators in energy markets from making trades that push oil prices higher.

The problem is, experts say, the president has taken both steps in the past when gasoline wasn't as much a problem.

Editor's Note: Meltdown on Main Street Coming, Prepare Now

Last June, the president dipped into the oil reserves and also, the administration has taken steps to cap positions to ease price swings in commodities markets.

The latter measure has done nothing but create legal hassles, while it also overlooks the assumption that proving a particular trade is excessively speculative is hard to do in the first place, experts tell CNBC.

President Barack Obama admitted he's in a tough spot.

"You know there are no quick fixes to this problem. You know we can't just drill our way to lower gas prices," the president said recently, CNBC reports.

“If we're going to take control of our energy future and can start avoiding these annual gas price spikes … we've got to have a sustained 'all of the above' strategy that develops every available source of American energy: yes, oil and gas, but also wind and solar and nuclear and biofuels and more."

The nationwide average rose to $3.70 a gallon, coming closer to $4 every day, CNNMoney reports, citing data from the motorist group AAA.

Only a month ago, the nationwide average was $3.41 a gallon.

GOP Presidential hopeful Rick Santorum says high gasoline prices threw the country into recession just four years ago, and warns a repeat performance is possible.

"We need to look at the situation of gas prices today. We went into a recession in 2008 because of gasoline prices," Santorum said a speech on Monday, Politico.com reports.

"The bubble burst in housing because people couldn't pay their mortgages because we're looking at $4 a gallon gasoline. And look at what happened, economic decline."

Editor's Note: Meltdown on Main Street Coming, Prepare Now

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Tuesday, 28 February 2012 09:19 AM
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