(WatchDogReport.org) – Electricity costs are rising, and bills are set to continue increasing as a result of President Joe Biden’s policies, according to one of the largest banks in the United States. A study carried out by the Bank of America Institute – “Powering the Revolution” – found that the Biden administration’s policies have driven up energy prices after energy cost inflation increased from 3.8% in January 2024 to 5.9% in May.
Analysts have partly blamed consumers’ increasing energy costs on Biden’s unprecedented push to switch to electric vehicles. Other causes cited are the use of heat pumps, the expansion of manufacturing, and the increase in the number of data centers used for artificial intelligence.
A study published by the America First Policy Institute in May found that gasoline costs had risen by 39.9%, natural gas costs had risen by 32.7% and electricity costs had risen by 17.5%, resulting in energy bills being 22% higher for households than they were before Biden entered the White House. This significant increase is putting a strain on many American families.
The conservative think tank stated that the energy cost increases dwarfed wage increases. When weighing up the impact on manufacturing and transportation, the think tank found that the cost of goods and services was 15.1% higher compared to their prices under the Trump administration.
The Biden administration announced in May that it would release a million gasoline barrels stored in a Northeast reserve to help bring down the cost of the fuel. Secretary of Energy Jennifer Granholm stated that Biden and Vice President Kamala Harris were committed to making gasoline prices affordable for American families.
Though former President Donald Trump’s policies on energy and the climate are likely to differ considerably from Biden’s if he returns to the White House in November, he will face significant challenges in completely reversing or overhauling Biden’s policies, which include the cancellation of the Keystone XL pipeline on the incumbent president’s first day of office.
Bank of America’s report on rising costs concluded that fluctuations in commodity prices worldwide will continue to affect households’ energy prices. The report stressed how the rising costs disproportionately impact elderly and lower-income citizens.
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