Peach Tree Times

President Joe Biden demanded gas stations lower their prices in a tweet he sent July 2.

The message has been met with controversy, with many—including the Wall Street Journal (WSJ) Editorial Board— claiming Biden blaming oil companies for high gas prices displays a “deep misunderstanding” of the nation’s private economy.

"My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril,” Biden said in his tweet. “Bring down the price you are charging at the pump to reflect the cost you’re paying for the product. And do it now.”

The WSJ Editorial Board claims the president's tweet "betrayed a willful ignorance about the private economy," stating large oil refiners "own fewer than 5% of gas stations in America." Over 60% of single stores are reportedly operated by families, with the rest being independently owned and operated by chains or grocery stores selling fuel.

Most gas stations make just a few cents a gallon in profit, staying in business mainly by selling food and cigarettes, according to the WSJ. The National Association of Convenience Stores reports its members have struggled this year as customers are making fewer stops and buying less amid high fuel prices.

The board claimed if retailers sold fuel at cost, most would likely go out of business, the WSJ reported.

As a result of thin profit margins, many refiners exited the retail business in the 2000s. The Energy Information Administration (EIA) said distribution and marketing made up approximately 5% of the price of gasoline in May or about 22 cents per gallon, according to the WSJ. This reportedly covers the cost of freight, labor, utilities, real estate, and credit-card fees.

Biden's most recent display isn’t a one-off, the WSJ Editorial Board points out. Rather, the president has repeatedly "accused oil and gas companies of price gouging and demanded that they increase production even while his administration threatens to put them out of business" in recent months.

Biden continues to be ignorant about the fact that "businesses make long-term decisions based on demand expectations and policy signals," the WSJ reported.

Georgia's gas average as of July 5 is $4.30 per gallon, according to the American Automobile Association. Compared to this time last year, the average American family in Georgia is spending $984 more per year on gasoline, according to the latest data from the Gas Misery Index.