Biden calls on US oil refiners to raise gas and diesel production to tackle prices
Joe Biden on Wednesday called on US oil refiners to produce more gasoline and diesel, saying their profits have tripled during a time of war between Russia and Ukraine as Americans struggle with record high prices at the pump.
“The crunch that families are facing deserves immediate action,” the president wrote in a letter to major oil refiners. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis.”
Gas prices nationwide are averaging roughly $5 a gallon, an economic burden for many Americans and a political threat for the president’s fellow Democrats going into the midterm elections.
Broader inflation began to rise last year as the US economy recovered from the coronavirus pandemic, but it accelerated in recent months as energy and food prices climbed after Russia invaded Ukraine and disrupted global commodity markets. The government reported on Friday that consumer prices had jumped 8.6% from a year ago, the worst increase in more than 40 years.
The president is sending the letter to Marathon Petroleum, Valero Energy, ExxonMobil, Phillips 66, Chevron, BP and Shell. Biden also has directed the energy secretary, Jennifer Granholm, to convene an emergency meeting and consult with the National Petroleum Council, a federal advisory group that is drawn from the energy sector.
Biden is asking each company to explain to Granholm any drop in refining capacity since 2020, when the pandemic began. He also wants the companies to provide “any concrete ideas that would address the immediate inventory, price, and refining capacity issues in the coming months – including transportation measures to get refined product to market”.
The draft letter notes that gas prices were
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