The Biden administration is prepared to release more oil from its strategic stockpile to prevent a surge in petrol prices this summer, aiming to curb inflation concerns ahead of the November election.
Amos Hochstein, President Joe Biden’s top energy adviser, mentioned that gasoline prices remain high for many Americans and expressed a desire to see them decrease further. Hochstein assured that efforts would be made to ensure a well-supplied market for American consumers, citing the country’s Strategic Petroleum Reserve (SPR) as a potential resource.
These statements come as Biden addresses voter concerns about his economic management leading up to the election. The administration has already committed to measures like controlling healthcare costs and banking fees to combat inflation, which has reduced significantly since reaching peak levels in 2022.
Potential decisions to tap into the SPR in the upcoming months could stir controversy, especially among Republicans who have criticized Biden for allegedly misusing the stockpile for political purposes.
Gas prices in the US currently average $3.45 per gallon, slightly lower than a year ago but still notably higher than during the transition from Donald Trump’s presidency to Biden’s.
Despite Biden’s efforts, many motorists hold him responsible for the price hikes. One example is David Gonzales Broche, an Uber driver in Las Vegas, who expressed dissatisfaction with the current prices compared to those during the Trump era.
Trump has used rising petrol prices as a critique against Biden, attributing them to the administration’s clean energy policies that supposedly restrict US oil production. He has advocated for increased drilling to lower energy costs.
Contrary to Trump’s claims, under Biden’s administration, the US has achieved record levels of oil and gas production and is exporting more than during the previous presidency.
The SPR, created decades ago as a precaution against oil price surges during supply disruptions, has been utilized by Biden during recent price spikes triggered by geopolitical events like Russia’s invasion of Ukraine.
In efforts to stabilize prices, OPEC+ has extended oil supply cuts, with expectations from Goldman Sachs predicting a rise in Brent crude prices to $86 a barrel in the next quarter.
As the election approaches, concerns about gasoline price spikes are heightened for any president seeking re-election, especially in an uncertain economic climate. Critics, including senior Republican figures, have urged the administration to use the SPR judiciously and not for political gains during election cycles.