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Dems’ Inflation Talking Point Debunked

The Federal Reserve Bank of Dallas rebutted a popular claim from Democrats that fuel prices are surging as a result of price gouging by oil companies.Alleged price gouging from Big Oil companies is not among the number of factors causing record high gasoline prices nationwide, senior Dallas Fed economists Garrett Golding and Lutz Kilian wrote in a blog post Tuesday. While it is true crude oil prices have declined at various points over the last several months while fuel prices remained high, gasoline costs aren’t often set by oil drillers and are affected by other expenses like rent and credit card fees, they argued.“Gas station operators set retail prices based on their expected acquisition cost for the next delivery of fuel from the local distributor, federal and state tax rates, and a markup that covers operating expenses, …

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