President Biden's Plan To Lower Gas Prices – Forbes Advisor - Forbes

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Updated: Nov 23, 2021, 10:17am
President Joe Biden is stepping in to cool overheated gas prices.
The national average price of gas is $3.39 per gallon, according to the U.S. Energy Information Administration— nearly $1.30 higher than this time last year.
To help manage this, Biden has announced the Department of Energy will release 50 million barrels of oil from the Strategic Petroleum Reserve in an effort to increase supply and push prices down.
He’s also instructed the Federal Trade Commission to investigate if the oil and gas markets are engaging in anticompetitive practices that are keeping consumers from seeing lower gas prices at the pump.
The additional barrels are expected to hit the market in mid-to-late December. If you need help managing higher gas prices in the meantime, there are ways to save.
Here are 4 tips to save money while fueling up:
High demand for crude oil and low supply of it is pushing gas prices upward.
Crude oil, the natural resource used to produce gasoline and diesel fuel, has seen dramatic changes to its supply throughout the pandemic. When Covid-19 first hit worldwide, and fewer people were on the roads, major oil-producing companies cut back on their oil production.
Now, with restrictions lifted—and more people heading to the gas pump—there’s not enough supply to keep up with the demand. Members of OPEC+ were expected to come to an agreement in October to produce more barrels—but instead chose to maintain current production rates.
Biden’s decision to release millions of reserve barrels is in coordination with other major energy consuming countries, including the United Kingdom and China, hopes it will put pressure on OPEC+ to finally ramp up supply.
However, gas prices were already turbulent before OPEC+’s reluctance to increase production. In April, the Colonial Pipeline, the nation’s biggest fuel pipeline, was the target of a cyberattack that forced it offline for six days. The shutdown led to gas shortages nationwide, and pushed average prices above $3 before Memorial Day, when they were expected to rise.
A breach and spill in a key pipeline that supplies fuel to the southeast occurred on Oct. 1, and repairs were slowed by heavy rain and flooding.
The combined consequences of these scenarios mean states all over the country are seeing higher gas prices. California’s average gas price per gallon is a whopping $4.70, and Nevada’s currently sits at $3.97.
I’m a Personal Finance Reporter for Forbes Advisor. Previously, I covered personal finance at other national web publications including Bankrate and The Penny Hoarder. I’ve been featured as a personal finance expert in outlets like CNBC, Yahoo! Finance, CBS News Radio and more. When I’m not digging up the best ways to manage your money, I’m out traveling the world. Follow me on Twitter at @keywordkelly.

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