Obama Administration: Gasoline Prices still High despite Current Reductions
The administration of President Obama recently said that gasoline prices are still high in spite of reductions at gasoline stations. Moreover, it also mentioned high-level government negotiations regarding the high cost of energy with international partners.
Growing fuel costs have led to economic worries and is becoming a hot-button issue during the presidential election cycle in the United States this year. As a result, the administration is prompted to consider different options to lower oil prices, such as releasing emergency crude reserves.
There is some silver lining to this story, for three straight weeks, gasoline prices have been dropping. Because of this, concerns of U.S. drivers that gasoline prices may reach $5 a gallon by summer time have been relieved.
When asked if the fall in gasoline prices have lowered the need to use some of the emergency oil reserves of the country, Daniel Poneman, the Deputy Energy Secretary, said that they are paying close attention to commodity prices, which are currently very high.
He further added that the administration is keeping each available tool that it can utilize and it is continuously consulting its international partners about this. France and Britain have expressed that they may join the US if a release occurs. South Korea and Japan also agreed to the plan and may also participate.
Earlier this year, current crude oil prices increased due to heightened tensions regarding Iran. Moreover, the rise in crude prices was an effect of the sanctions imposed on the nuclear program of Iran.
However, crude prices in the United States – the main influence on the price of gasoline – have dropped by almost 4% since the latter parts of March, and retail costs of fuel have also started to decline.