Eric Boehm of Reason responds to President Biden’s request to gas station owners.
- More than half of the gas stations in the United States are single store operations run by a single individual or family and have no say on the price of gas.
- Gas prices are set by global markets and supply and demand, not corporate greed.
- In the short term there is little that the president can do to reduce pain at the pump.
- To reduce prices in the long term, Biden should approve key infrastructure and pipeline projects and empower domestic energy producers.
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“And those gas station owners aren’t raking in massive profits, either. Over the past five years, retailer gross margins have averaged 10.7 percent of the overall price of gas, according to NACS data. But most of those profits come from selling food, drinks, cigarettes, and the like.”
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