How Responsible Is the U.S. President for the Price of Gas?

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24/7 Insights

• Presidential policies can have an impact on the price of oil.
• Many times, oil prices rise or fall without presidential influence.
• The price of gas plays a big role in presidential elections.
• Also: 2 Dividend Legends to Hold Forever

The question of how much the U.S. President is responsible for the price of gas is highly divisive. As gas prices are important to many Americans, public sentiment on who is responsible is complex. Ultimately, the President isn’t the only one responsible for gas prices, but some Presidential policies can impact what you pay at the pump.

Why Do Gas Prices Matter So Much?

Gas is one of the most visible prices a consumer will regularly see. Americans buy gas regularly, so they know the price well and have no worries about driving an extra block or two to save a few cents at the pump.

There is little question about the psychological impact of gas prices on many Americans. As soon as the gas price increases, we notice it quickly and feel it in our wallets. The same is true of healthcare costs, which also feel like cash grabs as soon as the price goes up.

These psychological impacts were displayed during the 1970s oil embargo when OPEC cut off oil to the US and other nations. This led to rationing, a nationwide shortage, and skyrocketing prices, which began our sensitivity toward what we pay at the pump.

How Gas Prices Impact Presidential Elections

It will come as no surprise to learn that the price of gas has long played a role in presidential elections. Should gas prices go higher while a president is in office, they shoulder the blame for Americans paying more at the pump, which can directly impact votes.

The world saw this in 2008 when the price of gas eclipsed $4 a gallon during the George W. Bush administration. Global factors, such as the Bush administration’s policies, contributed to the rising price. Still, the Republican nominee for president, Senator John McCain, who supported Bush policies, was seen as someone who would not lower the gas price.

This matter also surfaced in 2024 during the Donald Trump versus Kamala Harris debates as the two verbally exchanged thoughts on the economy. Trump, who oversaw lower gas costs, says he will return to those costs, while Harris indicates that Trump’s gas prices were a direct reflection of people traveling less during a pandemic. Regardless of who is right and wrong, it’s a campaign issue used to seek votes.

Presidential Policies that Affect Gas Prices

It should be strongly noted that the president does not directly set gas prices anywhere in America. However, the president does influence policies that can affect whether the price of gas rises or falls.

For example, a president’s energy policies can encourage or discourage domestic oil production. Republicans and Democrats have long battled to open land on federal lands for oil drilling or when President Biden shut down the Keystone XL pipeline in 2020.

Presidential policies that affect oil-rich regions like the Middle East or Venezuela can also directly impact the price at the pump. Military interventions in the Middle East have long been passed onto customers when they go to fill up.

Separately, when a president looks to reduce carbon emissions and asks for stricter environmental standards on refineries, the cost of producing oil goes up, which is, in turn, passed onto the consumer.

Factors a President Cannot Control

While some presidential policies can directly influence gas prices, others are out of the president’s hands. A natural disaster, for example, can disrupt production in the Gulf of Mexico and temporarily increase prices at the pump.

The biggest factor is the price of crude oil, which is often the biggest X factor in pricing. If OPEC decides to cut production, thereby reducing the world’s oil supply, prices will increase, and the converse is true. Similarly, any time there is market speculation about whether oil demand will go up or down, it can impact the price of crude oil, sending the gas price up or down.

Seasonal changes can also affect the price consumers pay at the pump. Summer months tend to increase demand, so the gas price goes up. Something to consider before your next road trip.

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