Biden to increase oil leasing fees, experts fear costs will increase gas prices

National

EL PASO, Texas (KTSM) – The majority of crude oil that will be coming from President Joe Biden’s order to release 50 million barrels from the U.S.’s strategic reserve will come from Texas.

One of the four majors storage facilities is in Freeport, Texas, the Bryan Mount Petroleum Reserve.

The order comes as a report released on Friday indicated that the Biden administration plans to increase the price of “oil leasing fees” on government lands.

The report states that Biden is recommending that Congress bumps the cost of oil leases from 12.5 percent to 18.75 percent, a 50 percent increase.

According to the New York Times, the move would generate almost three billion dollars in new revenue by the end of the decade. Oil companies would pay those fees to the government, however, experts worry that consumers would absorb the extra cost, impacting American families that are already paying record prices at the pump.

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