Is it the policy of the Biden administration to raise fossil fuel prices?

Wednesday, May 18, 2022
By Jacob Alabab-Moser

While Biden advocates transitioning away from fossil fuels, his current policies aim to lower rather than raise oil prices to combat price pressures from pandemic-related supply-chain issues and the Russian invasion of Ukraine.

On March 31, 2022, Biden acknowledged the need to increase domestic oil supplies to temper prices. Pointing out that some oil companies are refusing to increase production given the higher profits they're enjoying from the shortage, he authorized the release of a million barrels of oil a day for the next six months from the Strategic Petroleum Reserve. He also secured commitments from other countries to "release tens of millions of additional barrels into the market." Thirdly, he called on Congress to fine companies who are collectively "sitting on nearly 9,000 unused but approved permits for production on federal lands."

Biden clarified that his long-term goal remains establishing a clean-energy economy to secure permanent energy independence and combat climate change. He, along with many economists and oil-industry players, do support a carbon tax.

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