Reaction to release of oil reserves, will it lower gas prices?

News

SAVANNAH, Ga. (WSAV) – The average price of gas Tuesday in the United States was $3.40 per gallon. And President Joe Biden announced he is moving to released up to 50 million barrels of oil from the U.S. Strategic Petroleum Reserve.

“It will take time but before long you should see the price of gas drop where you fill up your tank,” said Biden.

He also convinced a number of other countries to release reserves to increase supply worldwide.

“This coordinated action will help us deal with the lack of supply which in turn, helps ease prices,” said the president.

Montrae Waiters from AAA The Auto Club Group said currently the price of gas in Georgia is $3.23 and $3.30 in Savannah.

Waiters says more than one million Georgians are expected to travel over the long Thanksgiving holiday and many are concerned about the price of gas. Waiters says it was $1.95 at this same time last year but that price was artificially low because far fewer people were traveling because of the pandemic.

Now that many people are out traveling again, she says many motorists are concerned about the prices. She also told us that crude oil prices (which make up half of the overall price of gas) have been creeping down a bit in recent days.

“But definitely in the last week, yes crude oil has started to decline so we hope that it definitely is going to impact the gas prices sooner rather than later,” she said.

President Biden says more supply from the reserve is expected to help consumers. Georgia Congressman Buddy Carter, a republican who represents the 1st district disagrees.

“But now he’s going to get 50 million barrels from the strategic oil supply which is equivalent to about three days worth of crude oil,” said Carter. “This is nothing more than a band aid on a crisis that Joe Biden and his Administration have created.”

Carter blames Biden policies for inflation, although many economists say it’s more the result of the pandemic and supply chain issues.

“No, inflation is caused by policy and the policy of this Administration is what’s causing the problem,” said Carter.

Carter also blamed what he called Biden’s ‘war on fossil fuels’ for the gas price shortages and said when first elected, that Biden had nixxed the continuation of the Keystone XL Pipeline as well as drilling on federal lands.

President Joe Biden said Wednesday he wanted to “address the myth about inflated gas prices and said they’re not due to environmental measures.”

President Biden says a lack of supply has led to a shortage and high prices across the globe. He said gasoline in Paris was recently about the equivalent of $7 a gallon. He continued to assert that the reserve supplies should help.

“But right now I will do what needs to be done to reduce the price you pay at the pump,” said Biden.

Biden also said he is asking the Federal Trade Commission to look into why prices at the pumps have not fallen recently as crude oil prices declined.

Copyright 2021 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories