Gas Rebate Cards to Help American Families With Surging Gas Prices May No Longer Happen

Since Russia invaded Ukraine in February, there has been an imbalance between the supply and demand for goods, causing the prices to soar.

This is what exactly happened to petroleum, and now the US government is looking for ways to help families grappling with surging prices at the pump.

Gas Rebate Cards

On Thursday, June 16, The Washington Post reported that the Biden administration is thinking of sending out rebate cards to help drivers pay for the fuel at gas stations.

However, on Friday, June 17, CNN reported that it is unlikely to happen because it could be too complicated to administer. Also, the administration believes that there is a possibility that the cards may be used for something else.

CNN added that Congress would need to approve the funding for the gas rebate cards first, but it could be challenging because of fraud concerns.

Also Read : Gas prices are rising, market watchers blame Iraq conflict

The White House has noted that past cards that were sent out to help American families were stolen from their mailboxes, failing to provide what it was supposed to.

High Gas Prices

The incredibly high gas prices are causing problems for President Joe Biden. It has also pushed the White House to search for temporary solutions.

According to Gizmodo, the average gas price in the US is now $7 a gallon. In some states like California, the gas price is as high as $9 a gallon due to the state's 11% gas tax.

The San Francisco Chronicle reported that California Gov. Gavin Newsom and several Democratic state legislators have considered distributing their own gas rebate cards, but even that may take some time before it happens.

In an attempt to lower the gas prices, President Biden wrote a letter to several gas companies in the country asking them to produce more oil. This is to help with the imbalance between the supply and demand of oil in the US.

However, there is no guarantee that the gas companies will do as they're asked because they benefit when gas prices are high. Without any legislation or regulatory threat, the companies won't have to ramp up production.

Temporary Solution

Since the start of the crisis, people have been finding ways to drive less, like trimming or consolidating trips to run errands, limiting the number of days they go to their offices, or using public transit instead of their own cars, according to The Wall Street Journal.

Robert McNally, the president of consulting firm Rapidan Energy Group, said that if the demand for gas declines, there is a possibility that by fall or winter time, the gas price will go down to $4 a gallon.

The biggest risk to demand will be if the nation falls into recession, as it will reduce the economic activity overall. People won't be going out of their house as much, especially those laid off.

There is also less need to go to work, travel, run errands, and do other activities that don't involve basic needs.

For now, experts are waiting to see if the prediction about the decline in demand will happen or if the surging gas prices are something that everyone has to deal with for years to come.