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Granholm: President could use Defense Production to handle gas supply crisis after asking for gas tax holiday
Granholm reiterated the Biden administration stance of blaming Russia for inflation and shortages
By Peter Aitken Fox Business
Energy Sec. Jennifer Granholm indicated that President Biden has considered using the Defense Production Act to help mitigate the record-high gas prices, but stressed that it is just "one" of the tools at the president’s disposal.
"President Biden, like all other leaders around the world, are grappling with this for their citizens," Granholm said Wednesday at a White House press briefing. "And the president is doing everything he can to reduce prices for American families."
The price for gas nationwide has exceeded $5 a gallon for the first time since AAA started recording prices in 2000. The average price jumped $1.92 compared to this time last year.
Granholm cited a number of factors for the record prices, including a shortage of supply due to the war in Ukraine and Russian embargoes, as well as general inflation pushing prices higher across the board.
"So we know that the war in Ukraine, having driven up the price of fuel … we've got to make up for the million barrels per day that we’ve lost," Granholm told reporters. "We will have a demand problem when China opens up, and there will be additional upward pressure on supply."
Granholm stressed the belief that "no president alone" can control gas prices and claimed the U.S. needs "More players at the table," which led to the president appealing to Congress to enact a gas tax holiday.
Biden announced he would call on Congress to approve a gas tax pause for three months. The federal government currently charges 18 cents in taxes per gallon of gasoline and 24 cents per gallon of diesel, the official said.
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