Pres. Obama during a visit to the Chevy Volt plant.
President Barack Obama is expected to address the issue of rising oil prices, on Friday, during a visit to a parts plant in Indianapolis that produces fuel-saving hybrid systems for buses and trucks.
The president is hoping to maintain the momentum offered by the weekend take-down of terrorist leader Osama bin Laden as he tackles one of the toughest issues facing the nation today. With job growth faltering, some analysts believe near-record fuel prices are threatening to push the U.S. back into recession.
Obama last week announced his goal of increasing domestic oil and exploration and production, while making automobiles and trucks more fuel-efficient and encouraging the switch to electric and other forms of alternative propulsion.
But the steady increase in fuel prices, now nearing $4 a gallon nationwide – and $5 in a few key markets, like Southern California – is becoming a short-term political liability. At the current rate, oil industry analysts say, a gallon of regular could soon top the July 2008 all-time peak of $4.11. And some are forecasting the figure may hit $5 before leveling off.
Obama has gained political momentum in recent days, after sending a Navy SEAL team into a compound in Pakistan to end the long hunt for bin Laden. Even the critical Donald Trump said, “I want to personally congratulate Pres. Obama,” but the good will isn’t expected to last long, whether from the Commander-in-Chief’s political rivals or the politic. And gas prices are one of his biggest challenges.
In recent days, the administration has expressed concerns about why gas prices have been rising so fast – up roughly a dollar since this time a year ago – and whether there is improper or even illegal activity behind the increases.
The Indianapolis plant, operated by Allison Transmission, is a potentially good backdrop for Obama. The facility produces hybrid systems used in a variety of trucks and buses and claims its technology has saved at least 15 million gallons of fuel since 2003.
The president originally planned to visit the factory on April 8 but had to postpone the visit to deal with the threatened shutdown of the federal government due to the Congressional debate over the budget.
Last November, the president visited another Indiana transmission plant operated by Chrysler.