President Joe Biden addressed recent concerns regarding gas costs, announcing measures designed to curb rising prices.
The price of gas has risen dramatically over the past few months, averaging at around $3.30 a gallon at the beginning of the year to $4.22 at the end of March, according to the president's March 31 statement. Biden cited two root causes — the COVID-19 pandemic and Russia's invasion of Ukraine.
"When COVID-19 struck, demand for oil plummeted, so production slowed down worldwide," Biden said. "Because of the strength and the speed of our recovery, demand for oil shot back up much faster than the supply. That's why the cost of gas began to rise last year."
He then added the rapid increase in prices is due to Russian President Vladimir Putin's war.
"As you’ve heard me say before, I grew up in a family, like many of you, where when the price of a gallon of gasoline went up, it was discussed at the kitchen table," Biden said. "Our family budgets, your family budgets to fill a tank — none of it should hinge on whether a dictator declares war."
He noted the import of Russian oil has been banned in America, which has come at a cost.
"As Russian oil comes off the global market, supply of oil drops and prices are rising," Biden said.
According to his statement, Biden is calling for an increase in oil supply. He called for a "use it or lose it" policy to discourage American oil companies from sitting on their reservoirs.
"Congress should make companies pay fees on wells on federal leases they haven’t used in years and acres of public land they’re hoarding without production," he said. "Companies that are already producing from these wells won’t be affected. But those sitting on unused leases and idle wells will either have to start producing or pay the price for their inaction."
Biden also announced he was authorizing the daily release of 1 million oil barrels from the Strategic Petroleum Reserve for six months — 180 million barrels in total. This is intended to bridge the gap until oil production is expected to increase later in the year.
