Soaring gas prices lead California drivers to Mexico for cheaper fuel: report
President Biden ordered the release of 1M barrels of oil a day from US strategic petroleum reserve for 6 months
FOX Business Flash top headlines for April 1
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Sky-high gas prices are driving some in California to fill up their tanks in Mexico.
Los Angeles' FOX 11 reported Thursday that some drivers with license plates from the Golden State are traveling as far as Tijuana.
BIDEN ADMINISTRATION TO RELEASE 1M BARRELS OF OIL DAILY FROM US RESERVES
Gas there, the outlet said, is being offered at prices at least $2 less per gallon than in Southern California.
With some stations in California continuing to charge more than $7 per gallon, the Biden administration has moved to cut fuel prices "fairly significantly."
Energy prices have spiked after the U.S. and allies imposed sanctions on Russia over its invasion of Ukraine.
Gas prices are displayed at a gas station Friday, March 11, 2022, in Long Beach, Calif. (AP Photo/Ashley Landis)
On Thursday, President Biden ordered the release of 1 million barrels of oil per day from the nation’s strategic petroleum reserve for six months.
According to the Energy Department, more than 568 million barrels of oil were held in the reserve as of March 25.
The president said that it was not known how much gasoline prices could drop as a result of this action, but noted it might be "anything from 10 cents to 35 cents a gallon."
"The bottom line is if we want lower gas prices we need to have more oil supply right now," he said. "This is a moment of consequence and peril for the world, and pain at the pump for American families."
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The president also wants Congress to impose financial penalties on oil and gas companies that lease public lands but are not producing.
He said he will invoke the Defense Production Act to encourage the mining of critical minerals for batteries in electric vehicles and tried to shame oil companies he said are focused on profits instead of putting out more barrels.
According to the AAA, gas is averaging about $4.23 a gallon, compared with $2.87 last year.
Soaring cost of diesel ripples through economy
Gas prices continue to rise as inflation surges in the U.S. FOX Business' Madison Alworth with more.
On average, the U.S. Energy Information Administration reports, Americans use about 21 million barrels of oil daily, with about 40% of that devoted to gasoline.
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The Associated Press contributed to this report.