Biden announces plans to reduce energy and gas prices

“The action I call will make a real difference over time,” he said.

In an effort to combat what he called “Putin’s price rise,” President Joe Biden announced plans on Thursday to release about 1 million barrels of oil from the country. Strategic Petroleum Reserve We need to reduce energy and gas prices over the next six months.

“Today I want to talk about one aspect of Putin’s war that affects the American people and has real consequences: Putin’s rising prices are felt by Americans and our allies at the pump. I know how much it hurts,” Biden began. “As you have heard me say, like many of you, I grew up in a family where petrol prices were discussed at the kitchen table. Nothing should interfere with whether a dictator is declaring war.”

Biden blamed “two roots” for high energy costs: Russian President Vladimir Putin’s continued invasion of Ukraine and the lasting economic consequences of COVID-19.

“Now Putin’s price rise is hitting the Americans, which brings me to the first part of my plan to immediately increase the supply of oil. Our prices are rising because of Putin’s move,” Biden said.

“The action I call will make a real difference over time, but the truth is, it takes days, not months, for companies to increase productivity. That’s why the next part of my plan is so important,” he said. “Today I approve to release 1 million barrels a day for the next six months.”

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Biden announces key action during a planned event to discuss measures his administration will take to curb the rise. Energy prices It has intensified following Russia’s invasion of Ukraine.

He said the publication was coordinated with partners and associates around the world.

Biden proposed a “use it or lose it” policy, calling on Congress to enact legislation to tax companies that sit in empty wells that Americans do not produce.

“No company should use an epidemic or Vladimir Putin at the expense of American families,” Biden said. “Productivity and innovation, that’s what they have to do.”

“Invest in your customers,” he added, adding that it was not only a “patriotic thing”, “it’s good for your business.”

Senior executives also spoke about the delayed relief at the pump.

“We are not focusing on immediate short-term price moves now,” an official said in an earlier press conference on Thursday, adding that the focus was on bridging the supply gap coming from the Russian oil market.

The first barrels of the announcement are due to hit the market in May for delivery that month. Officials said all the funds available through the sale of oil would be used to recover the reserves.

“We expect it to happen as soon as oil prices fall. We are no longer in an emergency,” an official told reporters.

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According to the International Energy Agency, about 3 million barrels of Russian oil a day will come out of the market in April due to Western sanctions, and the plan could help reduce the pump pain by reversing that loss.

This is the third time Biden has tapped into a strategic petroleum reserve. In November, he authorized the release of 50 million barrels as gas prices rose ahead of the holiday, and the United States, along with 30 other countries, released 30 million barrels following the outbreak of war in Ukraine, although it did not reduce skyrocketing prices. .

As of Friday, the Department of Energy had more than 568 million barrels of oil in reserve.

Given the complexity and volatility of the oil market, a number of geopolitical and economic factors are fueling oil prices, and there is no guarantee that this release will reduce prices in the long run.

In response to Biden’s expected announcement, crude oil prices fell by about 5% overnight, meaning gas pump prices may fall in the coming days.

According to the current national average of $ 4.23 per gallon of gas AAA$ 1.35 more than this time last year.

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