Consumers in the United States should see a decrease in the prices of gas soon amid the Biden administration decided to release a portion of the US Strategic Petroleum Reserve (SPR), senior administration officials told reporters on Tuesday
WASHINGTON (Pakistan Point News / Sputnik - 23rd November, 2021) Consumers in the United States should see a decrease in the prices of gas soon amid the Biden administration decided to release a portion of the US Strategic Petroleum Reserve (SPR), senior administration officials told reporters on Tuesday.
"In terms of when consumers will see relief, we think that it needs to be soon and should be soon," the officials said. "Importantly, though, we've seen, over recent weeks, fall-especially as reports have come out about the actions that we were considering -falling oil prices, falling prices of unfinished gasoline."
Earlier on Tuesday, President Joe Biden announced the release of 50 million barrels of oil from the US Strategic Petroleum Reserve in concert with other major energy consuming nations, including China, India, Japan, South Korea and the United Kingdom, to stem surging oil prices.
The Biden administration officials acknowledged that gas prices at the pump have so far not gone down significantly.
"That's why, you know, we see our actions here is two-pronged: first, making sure that the price of oil is coming down, reflecting the fact that we have to have supply matching demand, but also making sure that those savings are being passed through to consumers, which is why the President directed the Federal Trade Commission to investigate to see if there are anti-consumer practices in the oil and gas industry reflecting consolidation there," they said.
The national average gas price dropped slightly on Tuesday from $3.409 to $3.403 per gallon, while the total monthly decrease reached almost 40 cents, according to the American automobile Association. However, prices increased by more than $1 as compared to 2020.
Pump prices in the United States have increased sharply over the past year under the Biden administration's policy to gradually get away from fossil fuels and seek alternative sources of energy and have hit highs above $4.70 per gallon in California on Tuesday.