SHOT: CNN: Biden demands faster drop in gas prices as oil tumbles
CHASER: Former White House energy advisor/President of Rapidan Energy:
- Department of Energy’s EIA: “Statistical analysis demonstrates about half of the change in crude oil price is passed through to retail prices within two weeks of the price change, all other market factors equal.”
As the American Petroleum Institute’s SVP of Policy, Economics and Regulatory Affairs Frank Macchiarola told reporters today:
“The American people are looking for solutions, not finger pointing. Across the economy, retail prices in many industries go down slower than they go up — this isn’t a new phenomenon. As we’ve seen in the past, it takes time for changing market conditions to work through the supply chain and for the price of crude oil to be widely reflected in the price we pay at local gas stations, more than 95 percent of which are independently owned small businesses and not operated by oil companies.”
For a deeper dive, see this twitter thread by a Dallas Fed energy economist.