June 23 (UPI)—President Joe Biden’s chief energy official will meet with several oil executives on Thursday for an emergency meeting aimed at lowering gas prices in the United States, which has reached nearly $5 per gallon in a few weeks.
Energy Minister Jennifer Granholm will first meet to encourage managers to increase production. Last week, Biden sent a letter to the heads of these oil companies, urging them to increase production, which would almost certainly lower gas station prices.
“Your companies and others have the opportunity to act now to increase the supply of gasoline, diesel and other refined products that you manufacture and supply to the US market,” Biden wrote in a letter to senior management. To Chevron, ExxonMobil, Shell, Valero, Marathon, Phillips 66 and BP.
In the letter, the president criticized oil companies for making record profits while American drivers pay fuel prices.
Earlier this year, Chevron and ExxonMobil reported combined revenue of approximately $12 billion for the first quarter of 2022. BP and Shell also reported large revenues in the first three months of the year.
“Reduce the price you get at the gas station to reflect the amount you pay for the product. Do it now. Do it now,” Biden added to his letter. “Your customers, Americans, need help now.”
Several major oil producers have reported huge profits this year after the COVID-19 outbreak boosted national demand and gas station prices. Photo courtesy of Kevin Deech / UPI
In response, Chevron CEO Michael Wirth told Biden that oil companies are doing their best to avoid excessively high prices.
According to The Hill, in a letter to Biden, Chevron and its 37,000 employees work every day to help provide the world with the energy it needs and improve the lives of the billions who depend on this resource.
“Despite these efforts, your management has been more willing to criticize and sometimes discredit our industry. These actions do not solve the problems we face and are not what Americans deserve.”
Various factors keep gas prices high, including increased demand during the summer, limited US and foreign refinery capacity, and Russia’s war with Ukraine. Since the conflict began in February, Moscow has taken several costly steps that have diverted Russian oil from many world markets.
On Thursday, the national average price of gasoline was $4.94 per gallon, according to AAA data. It was almost 2 cents less than Wednesday and about 7 cents less than a week ago.
California has the most expensive gasoline in the country at $6.36 per gallon, followed by Nevada ($5.61), Alaska ($5.59) and Hawaii ($5.56).
In another move to lower prices, Biden on Wednesday urged Congress to suspend the quarterly federal gasoline tax. The federal government taxes about 18 cents per gallon of gasoline and 24 cents per gallon of diesel.
If Congress authorizes a gas tax holiday, the move will reduce those amounts to the nationwide cost of gasoline. States also impose their own gas taxes, which vary in amount. California has the highest tax at around 70 cents per gallon. All gas taxes finance a number of infrastructure projects, such as the repair and maintenance of bridges and roads.
Biden has also called on states to temporarily suspend fuel taxes this summer to make life easier for drivers.
Source: Breitbart
