Biden Urges Oil Companies To Increase Production As Prices Soar
President Joe Biden called on oil companies to produce more gasoline and diesel, saying their profits have tripled since the start of the Ukraine-Russia war while Americans face higher gas prices.
In a letter directed to seven oil refineries, Biden called on the companies to take action to lower the cost at the pump.
“The crunch that families are facing deserves immediate action,” Biden wrote. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis.”
Gas prices nationwide are averaging five dollars a gallon and Democrats worry the rising costs of living will take a toll during the midterm elections.
As the U.S economy began recovering from Covid-19, inflation rose slowly, but the war in Ukraine and supply chain issues have affected U.S. consumers with higher costs.
Last week, the administration announced that inflation had increased to 8.6% from the previous year.
In response to Biden, the American Petroleum Institute pointed out that the administration’s move away from fossil fuels is partly to blame for increasing prices.
API CEO Mike Sommers said in a statement: “While we appreciate the opportunity to open increased dialogue with the White House, the administration’s misguided policy agenda shifting away from domestic oil and natural gas has compounded inflationary pressures and added headwinds to companies’ daily efforts to meet growing energy needs while reducing emissions.”
Sommers continued, “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.”