Jennifer Granholm (Energy Secretary) suggested that President Joe Biden might have thought about using the Defense Production Act to lower record-high gas prices. She stressed however that the Defense Production Act is just one tool available to President Joe Biden.
Granholm spoke Wednesday during a White House press conference. Granholm stated that President Biden, along with all world leaders, is trying to solve this problem for their citizens.
The average gas price rose by $1.92 this year for the first time since 2000 when AAA started recording gas prices across the country.
Granholm cited a number of reasons why record prices were set, including the lack of supply due to the war in Ukraine, Russian embargos, and general inflation. These factors drove up prices across the board.
Granholm stated, “So we know the war in Ukraine has driven up fuel costs… so we must make up for those millions of barrels per hour we’ve lost,” Granholm told reporters. “China will be open and we will face a fuel shortage which will increase supply pressure. ”
Granholm stressed the belief that no president alone can control gas prices. Granholm also stated that the United States needs “More people at its table.” The president appealed to Congress to approve a gas tax holiday.
Biden said that he would request Congress to grant a three-month gas tax suspension. The official stated that currently, the federal government charges 18 cents for gasoline and 24 cents for diesel.
Officials expressed concern that Congress would rush to repeal the gas tax, as it could damage the funding Congress approved for the infrastructure bill. Biden insists on repealing the tax, but not removing money from Highway Trust Fund that finances mass transportation.
Granholm previously suggested that Biden might consider taking more drastic steps to reduce record-high gas prices. She appeared on Sunday’s “State of the Union” where she noted that the president is equipped with many tools, including the Defense Production Act.
Granholm said that the president was willing to use all of the powers to increase supply during a Sunday appearance at the “State of the Union.”
Granholm stated oil is traded on an international market. If you were to live in Singapore, you’d have to pay $9.
Granholm stated, however, that while the Energy Information Agency had predicted that gas prices would average $4.27 per gallon in the third quarter of 2018, he said that global events could “upend” those numbers.
She said, “if the EU bans Russian oil, it will lead to an increase in prices.”