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The President of the United States, Joe Biden yesterday chastised the oil industry over the recent soaring fuel prices which have now sparked off a 40-year high inflation, warning of unspecified emergency measures.
The letter which was obtained by Africa Daily News, New York on Thursday morning was sent to seven major oil corporations. It was Biden’s most direct salvo yet in a campaign to blame the industry for stoking price increases.
Average fuel prices are now $5 a gallon for drivers in the United States, up from $3 a year ago, and the spike is reverberating through the entire economy, helping to sink Biden’s approval ratings to below 40 percent.
‘Refinery profit margins well above normal being passed directly onto American families are not acceptable,’ Biden wrote in the letter to executives from Shell, Marathon Petroleum Corp, Valero Energy Corp, ExxonMobil, Phillips 66, Chevron and BP.
Biden pointed out that the economy is what he described as ‘a time of war,’ referring to the global fallout from President Vladimir Putin’s invasion of Ukraine and subsequent sanctions against energy exporter Russia.
“My administration is prepared to use all reasonable and appropriate federal government tools and emergency authorities to increase refinery capacity and output in the near term, and to ensure that every region of this country is appropriately supplied,” Biden said, without detailing what kind of actions he could take.
Biden has regularly lambasted the oil industry for what he says is a failure to tap into already approved wells and increase output.
However, the letter, accompanied by a graph depicting rising producer profits, marked an escalation in the war of words.
In the letter, he asked for ‘explanation of any reduction in your refining capacity since 2020 and 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 crunch that families are facing deserves immediate action. Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis,’ he wrote.
Biden’s Democratic Party risks a heavy defeat, losing control of Congress, in November elections and polls show that fears over the economy dominate.