High gas prices are harming many Americans, forcing them to cut back or reduce their savings.

On Thursday, the U.S. Commerce Department release data showing that retail sales rose 0.8 percent in September to US$745 billion, largely driven by higher gasoline prices that boosted consumer spending at gas stations.

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Excluding sales at gas stations, retail sales increased just 0.2 percent during the month, suggesting underlying consumer demand remained subdued.

While rising retail sales are generally seen as a sign of economic resilience, analysts said the September increase offered a less encouraging picture of consumer spending, as higher fuel costs accounted for much of the growth.

“Retail sales definitely looked weak in September,” said Dean Baker, a macroeconomist and co-founder of the Center for Economic and Policy Research. Experts also noted that high gas prices are harming many Americans, forcing them to cut back or reduce their savings.

Mike Johnson:

“Everybody's frustrated about fuel prices, but that's not related to policies. It's not related to the Republicans. This is related to the Strait of Hormuz.”

It is absolutely related to policy and Trump’s war on Iran, which Republicans wholly support. He is a…

— Power to the People ☭🕊 (@ProudSocialist) October 12, 2026

Gary Hufbauer, a nonresident senior fellow at the Peterson Institute for International Economics, said: “About 50 percent of households are living paycheck to paycheck, and if they are squeezed by gasoline prices, they have to cut back elsewhere. But the other 50 percent just reduce their savings to pay for higher gasoline prices.”

High energy prices could create a new wave of inflation. “The longer energy stays elevated, the more likely it generates a new wave of inflation. Another six months would run this risk,” Hufbauer said.

The data were released just weeks before November’s midterm elections, at a time when underlying prices are already high and gasoline prices threaten to make matters even worse. Republicans could take a beating at the polls over voters’ displeasure with high prices that show no sign of coming down.

However, even if Democrats take control of Congress, the party will have its work cut out after the dust settles, as pushing down gas prices means finding a solution to the war in Iran, which seems improbable at the moment.

At the same time, underlying inflation continues unabated. Experts said getting back to pre-COVID price levels requires the Fed to step in and raise interest rates. However, the central bank has shown no desire to hike rates to the 5 percent level, or higher, that economists say is needed to tame inflation.

Some experts noted that the GOP is caught between a rock and a hard place. Brookings Institution Senior Fellow Darrell West said, “Republicans are caught between fighting inflation and a slowing economy, which is a big problem for them in November.”

“Gas prices should drop when the Iran War ends, but it is not clear how (Donald) Trump brings that conflict to a reasonable conclusion,” West said.

teleSUR/ JF

Source: Xinhua

European governments and the United States are negotiating over emergency diesel reserves as a global shortage of refined fuel places increasing pressure on transport, agriculture and industry.

The Trump administration has urged France and Germany to release diesel from their strategic stocks, while raising the possibility of restricting American diesel exports if European governments fail to put additional supplies on the market.

Washington has asked Europe to release about 120 million barrels over six months, according to people familiar with the talks.

The demand puts European governments in a difficult position. Releasing reserves could help reduce prices in the short term, but it would also reduce the emergency buffer available if disruption to Russian or Middle Eastern supplies becomes more severe.

The European Commission, France, Italy, Ireland and Britain held discussions on 1 October over possible diesel stock releases. Germany has been involved separately in discussions with Washington.

France and Germany hold a substantial share of Europe’s emergency diesel reserves.

Under the EU’s Oil Stocks Directive, member states must maintain emergency crude oil or petroleum-product stocks equivalent to at least 90 days of net imports or 61 days of domestic consumption, whichever is higher.

The requirement exists to provide a buffer against major supply interruptions rather than normal market fluctuations.

Europe’s dependence on imported oil remains substantial. Oil accounted for around 38 per cent of the EU energy mix in 2024, while approximately 95 per cent of crude oil consumed in the bloc was imported.

The latest dispute follows months of mounting pressure in the diesel market.

EU Today reported in September that President Donald Trump had urged Ukraine to reduce attacks on Russian refining infrastructure as global diesel supplies tightened.

Moscow has since extended restrictions on diesel exports. At the same time, disruption to Middle Eastern refining and shipping has constrained another major source of supply, while China moved on 1 October to suspend most fuel-product exports outside Hong Kong and Macau.

The result has been a particularly sharp problem for Europe because its refining capacity has declined over the past two decades and it has become increasingly dependent on imported middle distillates.

European dependence on outside energy supplies was already becoming more expensive before the latest diesel shortage. Recent Eurostat figures showed that the value of EU petroleum-oil imports increased by 55.8 per cent in the second quarter of 2026, even though the physical volume imported rose by only 1.2 per cent.

The United States has become an increasingly important diesel supplier since Europe sharply reduced imports of Russian refined products following Moscow’s full-scale invasion of Ukraine.

That means a US export restriction would have an immediate impact on the European market.

EU Trade Commissioner Maroš Šefčovič said after discussions with US Trade Representative Jamieson Greer that Brussels wanted a coordinated transatlantic approach to lowering diesel prices.

He said restrictions on US diesel exports would damage Europe’s economic performance and that both sides had agreed to remain in close contact.

Šefčovič also noted that the EU had exceeded its commitment to purchase US energy under the trade agreement reached at Turnberry in 2025.

US Energy Secretary Chris Wright, meanwhile, said he was “highly confident” European governments would release additional stocks.

Wright argued that coordinated action was particularly important as the northern hemisphere moved into the harvest season and towards winter, when demand for diesel and heating fuels normally increases.

Emergency releases have already been used on an exceptional scale this year.

In March, the 32 members of the International Energy Agency agreed to make 400 million barrels of oil from emergency reserves available to the market after disruption caused by the Middle East conflict.

It was the largest coordinated stock release in the organisation’s history.

A further European release would therefore come only months after governments had already drawn on strategic reserves to stabilise markets.

The pressure is increasing as oil prices again move higher. Brent crude settled above $102 a barrel on 1 October amid concerns over Chinese fuel exports and further US military deployments to the Middle East.

EU energy officials are now considering whether the immediate risk of high diesel prices outweighs the value of keeping fuel in reserve against a potentially more serious supply disruption later in the year.

In a recent phone call, Donald Trump urged Volodymyr Zelensky to stop Ukrainian attacks on Russian oil refineries. Whether a request or a demand, this appears, certainly at first glance, fundamentally different from the Biden administration’s policy of restricting the use of US long-range missiles to hit targets inside Russia. The US president has justified […]

The post Trump’s bid to stop Ukraine’s Russia strikes a strategic disconnect appeared first on Asia Times.

Core inflation, which excludes volatile food and energy prices, rose to 8.7% year-over-year in August, up from 8.4% in July.

The post Pakistan’s inflation rises to 11.15% in August 2026 appeared first on BOL News.

ISLAMABAD: The leaders of Pakistan’s Jamaat-e-Islami (JI) on Sunday warned of staging sit-ins in Rawalpindi and Islamabad if authorities refuse to grant permission for a public gathering in the garrison city, as the party escalates pressure on the government over rising fuel prices and inflation. Hafiz Naeemur Rehman, the emir of Jamaat-e-Islami, told a news ... Read more

The post Jamaat-e-Islami threatens sit-ins in Rawalpindi, Islamabad if protest permit denied appeared first on BOL News.