NFU Statement: Suspending Deliveries to Oil Reserve
WASHINGTON (May 20, 2008) – National Farmers Union President Tom Buis today said the president’s signing of legislation to suspend oil deliveries to the Strategic Petroleum Reserve was the right move.
“Consumers are being pinched by record gas prices and increasing food prices. This action will help alleviate these pressures.
“The biggest culprit for increasing food prices is sky-high energy costs. With the average food item traveling more than 1500 miles before reaching the final consumer, it is no wonder that food costs are increasing when gasoline prices have increased by nearly 200 percent over the past seven years.
“Farmers and ranchers have felt the effects of rising energy costs as well. Fuel, fertilizer and other inputs are at record levels. And because farmers are price takers, not price makers, they cannot pass on these increases.
“NFU strongly supports halting deposits to the Strategic Petroleum Reserve and urges the president to go a step further by opening the oil reserve to help alleviate gas prices, which would have an immediate positive economic impact for consumers.”