President
“The crunch that families are facing deserves immediate action,” Biden wrote in the draft of a letter to oil refiners obtained by The Associated Press. “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
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 draft letter notes that gas prices were averaging
As Biden sees it, refineries are capitalizing on the uncertainties caused by “a time of war.” His message that corporate greed is contributing to higher prices has been controversial among many economists, yet the claim may have some resonance with voters.
Some liberal lawmakers have proposed cracking down on corporate profits amid the higher inflation. Sen.
The president has harshly criticized what he views as profiteering amid a global crisis that could potentially push
“There is no question that (Russian President)
The letter says the administration is ready 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." It notes that Biden has already released oil from the
The president is sending the letter to
He also has directed Energy Secretary
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.”
There may be limits on how much more capacity can be added.
The draft letter notes that roughly 3 million barrels a day of refining capacity around the world have gone offline since the pandemic began. In the
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source