"The hypocrisy of the Biden administration taking credit for lower gasoline prices as the summer driving season begins by fulfilling a Congressional mandate is unsurprising."
The Department of Energy announced Tuesday that it would begin selling the one million barrels of gasoline in the Northeast Gasoline Supply Reserve.
I commented on Biden's election problem with high gasoline prices and our expectation that he would repeat his 2022 move to tap the Strategic Petroleum Reserve to lower pump prices in the run-up to the November election.
Biden successfully pushed down gasoline prices by tapping the SPR in 2022.
The gasoline reserve was established in 2014, two years after Super Storm Sandy slammed the Northeast region and disrupted fuel supply availability sending gasoline prices soaring.
Areas from northern South Carolina to southern Virginia were hardest hit, with 71% of gasoline stations running out of fuel in Charlotte on May 11th and 87% of stations out in Washington, D.C., on May 14th. Average fuel prices rose to their highest point since 2014, reaching more than $3 a gallon.
The Energy Department's 2022 report on the SPR said it costs about $13 per barrel annually for operations and maintenance of the gasoline reserve compared with about 30 cents per barrel for crude oil in the SPR. The hypocrisy of the Biden administration taking credit for lower gasoline prices as the summer driving season begins by fulfilling a Congressional mandate is unsurprising.
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