Biden said U.S. gasoline prices will fall after the release of the strategic reserve

Spark Global Limited reports:

U.S. President Joe Biden on Tuesday praised his administration’s international and domestic efforts to fight inflation and high gas prices, and promised Americans that gasoline prices would fall “before long.”

Mr. Obama announced the release of the U.S. Strategic Petroleum Reserve, in coordination with other countries, to increase domestic oil supplies, which he said was the largest ever. The White House is also investigating possible illegal practices by oil and gas companies that it says are keeping prices artificially high.

“I have told you before that we are going to take action on these issues,” he said. And that’s exactly what we’re doing, “Biden said in a White House radio address.

“It takes time, but it won’t be long before you see gas prices go down where you fill up your tank. In the long run, as we move to clean energy, we will reduce our dependence on oil.”

The Biden administration and the Federal Reserve had described a spike in inflation earlier this year as temporary, but pressure for action has grown as the price surge continues into the fall.

The U.S. Department of Labor’s Bureau of Labor Statistics reported earlier this month that U.S. consumer prices posted their biggest annual increase in 31 years in October, driven by sharp increases in the cost of gasoline and other goods.

Mr. Biden acknowledged that Americans were feeling the pain, but said his administration was working to remove gridlock in supply chains, speed up work at the nation’s ports and work with retailers to ensure that “everything from bikes to skates” were on store shelves in time for the winter holidays.

The White House on Tuesday announced plans to release millions of barrels of oil from strategic reserves, in partnership with China, India, South Korea, Japan and the United Kingdom, to cool prices. Opec + members have repeatedly ignored calls to increase crude supplies.

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Biden also took aim at companies that he said had made record profits but failed to pass on savings to consumers.

“If the gap between wholesale and retail gasoline prices had been the same as the average in the past, Americans would be paying at least 25 cents a gallon less today,” he said. “Instead, companies pocket the difference as profit, and that’s not acceptable.”

Mr. Biden said last week that there was growing evidence that anti-consumer behavior by oil and gas companies was contributing to high fuel prices, and he asked the Federal Trade Commission to further investigate possible “illegal practices” in the market.

White House press secretary Jen Psaki on Monday also highlighted the Obama administration’s call for the Federal Maritime Commission to ensure free and fair competition and prevent “high profits” for Marine airlines, which said new data showed the company made nine times more profit in the industry than in the third quarter of last year.

 

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