Barrasso's Plan to Cut Gas Prices

Press Release

Barrasso's Plan to Cut Gas Prices

U.S. Senator John Barrasso , R-Wyo., outlined his plan to relieve pressure on gas prices temporarily by suspending federal oil purchases for the Strategic Petroleum Reserve.

"People in Wyoming know firsthand the impact high gas prices have on their wallets," Barrasso said in his speech to the Senate. "High prices at the pump present an extraordinary challenge for folks in Wyoming . It is not uncommon for us to commute 20, 50 or even 100 miles round trip to work, to school, or to shop for groceries."

"I support the goal of protecting America 's energy security, and the Strategic Petroleum Reserve has served us well. But the federal government shouldn't be competing with consumers for oil."

Barrasso's bill, S. 2927, instructs the federal government to stop putting oil into the Strategic Petroleum Reserve when the average price of gasoline is over $2.50 per gallon, and the price of diesel fuel exceeds $2.75 per gallon.

"Everyday the government is pulling tens of thousands of barrels of crude oil off the market that could otherwise be used by truckers, airlines, and our neighbors," Barrasso added.

Senator Kit Bond (R-MO), the bill's cosponsor, said: "Our legislation will help drivers from big rigs to Buicks with lower diesel and gas prices. Truckers on the open highways, farmers sending their goods to market, and families in their neighborhoods are all suffering from pain at the pump and they need our help now."

The Strategic Petroleum Reserve was initially created in the 1970's to respond to the OPEC oil embargo.

Currently, the government buys roughly 70,000 barrels of oil each day regardless of the price. At current prices, it costs the government $8 million per day. That equates to $244 million per month, or nearly $3 billion per year.

One analyst has argued that continuing to fill the Strategic Petroleum Reserve adds as much as ten percent to the price of gasoline.

The bill will also require dollar cost averaging when it comes to purchasing oil in the future, and outlines the need to store heavier grades of crude oil.

The Government Accountability Office has pointed out that such a strategy would be more cost efficient and provide more refiners with oil they can use.

"I made a commitment to the people of Wyoming to do what I can to help when it comes to Washington policies that don't make sense," Barrasso concluded. "These are fundamental steps to improve government accountability, fiscal responsibility and lessen the burden on working families."

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