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Gas & Politics Mix During Election Years

POSTED: 3:38 pm EDT July 29, 2008
UPDATED: 5:54 pm EDT July 29, 2008

There is finally some steady relief at the pump, and if recent history repeats itself that trend could continue right up until Election Day.

As gas stations began the day by lowering prices yet again, some drivers openly wondered whether it was part of a ploy by big oil to raise the prospects of a presidential candidate.

Channel 4 Action News reporter Aaron Saykin asked Lori Steele of Lawrenceville if she believes gas prices are lowering because of political agendas? “Oh yeah,” said Steele. “Most definitely. Why are they coming down now?”

Watch Aaron Saykin's Report: Gas & Politics Mix During Election Years

While this may sound like the stuff of conspiracy theorists, consider what happened in 2006.

In the months leading up to Election Day, prices that were stuck on $2.95 a gallon suddenly plummeted about 80 cents.

At the time, even Governor Ed Rendell implied that the oil companies were trying to help the Republicans hold Congress.

“I don’t believe gas is down to $2.15 to stay,” Rendell said. “I have a hunch that it will go back up after the election.”

So far 2008 is starting to look a bit like 2006. In just the last two weeks, prices at the pump have dropped more than a dime.

Energy analyst Kent Moors predicts prices could fall as low as $3.50 in September.

Moors said we are in a normal cycle. “The declines in prices and the stabilizing in prices generally takes place very quickly after July 4, absent any other circumstances,” said Moors.

He pointed out the normal cycle did not happen in 2007 when there was no election and he said to the extent big oil can play politics, it traditionally has.

“I think Senator McCain has already indicated that he is prepared to allow drilling in areas that Sen. Obama would not,” Moors said. “So that would be an advantage to the oil companies.”

The oil companies have repeatedly insisted the price is set by world markets and not them. The bad news is that if this really is a repeat of 2006, prices will almost immediately start climbing after Election Day.

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