Biden administration tries to drive down gas prices
WASHINGTON (Gray DC) - Concerns over rising gas prices are now demanding some action.
Tuesday, the Biden Administration announced a plan to help drive down how much people are paying at the pump by authorizing use of 50 million barrels of oil from the nation’s petroleum reserve.
The U.S. consumed about 21 million barrels of oil a day in September, so this release would be used up in less than three days at that rate.
The Gray Television Washington News Bureau asked Secretary of Energy Jennifer Granholm about the plan.
Granholm said, “What we did today in releasing this amount, it means that over the next few weeks we will see an increase in supply and therefore the prices should stabilize. Right now, the reason why we’re seeing these high prices is because demand is much higher than supply of oil and gas, and so we’re trying to correct that imbalance.”
Democrats on Capitol Hill praised the move to ease the financial burden on middle class families.
We saw critical statements from Republicans like Sen. John Barrasso (R-Wyo.).
Rep. Tom Cole (R-Okla.) even publicly opposed this move.
Granholm responded to the criticism and said, “The president’s policies have nothing to do with gas prices. As you see today, it is solely oil on a global market. Countries all around the world are seeing the same phenomenon, which is why a number of countries that have also strategic petroleum reserves are going to release some of their supply as well to bring down prices. So those arguments are simply not true.”
Granholm said fuel from the reserve will begin moving into the marketplace in the next few weeks. She said it’s not exactly known how far prices at the pump will fall by Christmas.
The United Kingdom, India, China, South Korea, and Japan have all also agreed to release parts of their own petroleum reserves to try and bring prices down globally.
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