How President Biden's decision on reserves will affect prices at the pump and grocery stores
CHICAGO (CBS) – Washington is also taking action on high gas prices. On Thursday it was announced one million barrels of the country's oil reserve will be released.
CBS 2's Sabrina Franza looks at how the move could help your bottom line at the pump and supermarket.
Sorted, sealed, and delivered at Testa Produce in the Back of the Yards neighborhood.
"Everything moves by truck. So, anything that moves by truck, anything that costs trucks money, is going to be passed onto the consumer eventually," said Peter Testa, President/CEO.
Gas bills pile on the distributor -- and on your wallet.
"Any, like the grocery stores and all that, they're paying those high costs, in addition. So, they have to pass that on. They can't just absorb that."
Testa Produce is filling 40 to 45 trucks a day with diesel fuel -- that equates from $5,000 to $10,000 extra a month.
"You end up paying that expense."
President Biden announced Thursday that the U.S. would open up more reserves -- 1 million barrels a day. The largest reserve release in U.S. history.
The president says there's no way of knowing how much prices will dip -- or how soon.
"When you see oil at $100 or $110, you can bet your bottom dollar that gas would be jumping," Testa said.
The average price per gallon in Illinois today is $4.46.
AAA tells us that crude oil now costs $104 a barrel -- $10 less than a week ago. That translates to 25 cents less at the pump.
With more barrels released, the idea is that prices go down.
Experts and even the president say it's not a guarantee.
