Experts warn U.S. banning Russian fuel could affect costs of more than just gas
NEW YORK -- As President Biden continues to put economic pressure on Russia, experts warn the move to ban the import of Russian fuel could impact more than just America's gas prices.
"I think it's, like, outrageous," said Quazia Stroman, of Pennsylvania.
Drivers have been painfully watching prices at the pump rise from the pandemic recovery to Russia's invasion of Ukraine.
"Every day, it was going up. Went from $3.50 to $4, from $4 to $4.25," Stroman said.
"It's terrifying, but I totally understand what we kind of need to do to impact Russia," Jersey City resident Danielle Mullins said.
Mr. Biden acknowledges taking aim at the Russian economy by banning oil and gas imports to the United States will drive up prices.
"The market already responded, so some of the higher prices you're already seeing is because we anticipated that this would come and they were starting to hedge against that," said Carl Gould, business management expert and president of 7 Stage Advisors.
Gould says it's a ripple effect, so we should also anticipate a spike in the cost of food, home heating oil and all kinds of goods and services.
"Anything truck driven or truck delivered literally will likely carry with it a surcharge," he said.
"Generally because airfares do set fares in advance and because they do kind of make bets on oil, we don't usually see oil prices immediately affect fares," said Willis Orlando, senior flight expert for Scott's Cheap Flights.
But Orlando says prices are good and recommends booking now to avoid potential hikes later.
"The effects of oil can only be passed onto the consumer so much because of how competitive the fare environment is right now," he said.
While the U.S. only imports a small amount of oil from Russia, the impact is already being felt, so some are calling on the president to take further action.
"We want to see him ramp up domestic production. We can extract hundreds of thousands of barrels from here in the United States," Rep. Nicole Malliotakis said. "We can ease the pressure that Americans are feeling at the pump."
Following the president's announcement, New York Attorney General Letitia James is warning oil companies and gas stations of price gouging and urging consumers to report any concerns.
