President Joe Biden called on U.S. oil refiners to produce more gasoline and diesel on Wednesday, claiming that profits had tripled during the conflict between Russia and Ukraine, while Americans face record high gas prices.
Gas prices are averaging around $5 per gallon across the country, putting a financial strain on many Americans and posing a political danger to the president’s Democratic colleagues as the November elections approach.
Broader inflation began to grow last year as the US economy recovered from the coronavirus outbreak, but it has accelerated in recent months as oil and food prices have risen as a result of Russia’s February invasion of Ukraine, which disrupted global commodities markets.
Consumer prices increased 8.6% from a year earlier, the largest increase in more than 40 years, according to the government.
When oil was last near the current price of $120 a barrel in March, gas prices were averaging $4.25 a gallon, according to the letter. According to the letter, the 75-cent change in average gas prices in only a few months indicates both a refinery capacity shortfall and earnings that are presently at their greatest levels ever recorded.
The American Petroleum Institute, which represents the industry, said in a statement that capacity has been reduced as part of the Biden administration’s climate change strategy to transition away from fossil fuels.
In a statement, API CEO Mike Sommers remarked, “I reinforced in a letter to President Biden and his Cabinet yesterday ten meaningful policy actions to ultimately alleviate pain at the pump and strengthen national security, including approving critical energy infrastructure, increasing access to capital, holding energy lease sales, among other urgent priorities.”
Refineries, according to Biden, are profiting from the uncertainty that comes with a time of war. Many economists have criticized his idea that corporate greed is leading to rising prices, but the assertion may resonate with voters.
In the face of rising prices, several leftist MPs have recommended tightening down on corporate profits. Senator Bernie Sanders, a Vermont independent, suggested a 95 percent tax on earnings over pre-pandemic levels in March.
In the midst of a worldwide crisis that might force Europe and other areas of the world into recession, the president has fiercely attacked profiteering, declaring following a speech Friday that ExxonMobil made more money than God this year. ExxonMobil reacted by stating that it has previously notified the administration about its plans to expand oil production and refining capacity.
