White House May Tap Reserves To Bring Down Gas Prices
WASHINGTON DC (CBS4) - As the price for regular unleaded inches towards $3.65 a gallon across most of South Florida, the Obama administration is considering tapping into the country's strategic oil reserve to help bring down the price.
A new survey of fuel prices released Sunday showed the average price of regular unleaded gas has jumped 33 cents a gallon in the last two weeks, the second biggest increase in two weeks on record. Nationwide, the average price of regular unleaded has soared to $3.51 a gallon, according to the Lundberg Survey; oil is selling for more than one hundred dollars a barrel. In South Florida, drivers are paying a bit more than the national average, according to the American Automobile Association which found, average drivers in Miami were paying $3.60 a gallon and drivers in Ft. Lauderdale were paying $3.59 a gallon.
Limousine driver Antonio Stubb said the higher prices are bringing down his bottom line.
"Before I used to make it three or four days with $75 of gas, now every two days I have to put $75 in the car so, you know, it's ridiculous," said Stubb.
Analysts say there are a couple of reasons for the sudden increase including the unrest in the Middle East, where much of the world's oil is produced, and increased demand.
The White House has said it is considering all options to combat the rising price at the pump including tapping into the country's emergency oil reserve.
"All matters have to be on the table when you go through -- when you see the difficulty coming out of this economic crisis we're in and the fragility of it," said Chief of Staff William Daley.
Some economists, however, have said that rising prices don't constitute a true emergency.
"I think it is premature to open up the strategic petroleum reserve. I don't think it is going to make a big difference with respect to prices and at this point we can digest these prices," said Mark Zandi with Moody's Analytics.
The last time the government sold oil from the nation's reserve was after Hurricane Katrina; oil prices sank nine percent.
