Is Fighting Rising Fuel Costs Futile?

7/21/2022

Investors everywhere are feeling the pain of rising gasoline costs. Seemingly every day the prices at the pump are changing dramatically, giving investors whiplash at how quickly prices are adjusting. According to the Bureau of Labor Statistics, gasoline prices rose 38 percent from February 2021 to February 2022. Investors all over the country are talking about rising costs of gasoline, and everyone has a different strategy they feel the country should take regarding this topic.

There are many ways to address the rising cost of gasoline in the United States, however wealthy investors do not agree how the country should address it. Opening up our own pipelines is the preferred way of addressing this issue for 53 percent of wealthy investors, according to recent research from Spectrem Group. Senior Corporate Executives and Managers are more likely to feel this is a solution for rising gasoline costs at 64 percent. WWII investors feel even more strongly that opening up our pipelines is the response the United States should take, with 73 percent of WWII investors feeling that way.

Another option that the country could utilize to mitigate the rising cost of fuel is releasing oil reserves, which is something that has been done already, although 40 percent of investors still believe that releasing oil reserves would help the issue of rising gasoline prices. Women are more likely than men to feel releasing oil reserves is something the United States should do about fuel costs. Over half of Democrats feel that we should be releasing oil reserves, while only 31 percent of Republicans feel the same way.

Financial incentives for individuals and companies that encourages gasoline conservation is something that 28 percent of wealthy investors feel we should do about the rising costs of fuel in the United States. That percentage is much higher among Democrats than Republicans. Business Owners are far less likely to feel that is a viable solution to rising fuel prices.

There are a few options that investors are far less likely to feel should be done to combat the rising cost of fuel. Only ten percent of wealthy investors feel that higher fuel taxes encouraging lower fuel consumption should be done. Even fewer investors believe that the United States should back off sanctions with Russia to allow more of their fuel into our country.

Fuel prices are likely to remain high in the upcoming months, regardless of what the United States decides to do. Rising fuel costs and inflation are causing significant concern for investors and it is wise to discuss these concerns with a financial professional to determine if there are any changes needing to be made to their financial plan or investment portfolio as a result of the high inflationary environment.