United States: Joe Biden blames oil companies and asks them to lower fuel prices

US President Joe Biden again accused oil companies this Wednesday, which he accuses of not refining crude oil sufficiently, and He asked them to lower the price “right now” of fuel for consumers.

“Over the past two weeks, the price of crude oil has fallen by more than $ 10 a barrel. This usually lowers gasoline prices. about 25 cents per gallon (3.78 liters) and yet some gas stations have cut them down by just a few cents, ”Biden complained during an no-questions-asked appearance at the White House.

The president made these statements asking his country’s Congress to approve his proposal Fr.eliminate federal taxes petrol and diesel in the months of July, August and September.

Biden’s plan would temporarily waive income tax. 18 cents per gallon for gasoline and 24 cents per gallon for diesel imposed by the federal government to finance, among other things, the maintenance of highways.

The economy

The president defended that the country’s strong economic recovery after the crisis caused by the pandemic would allow the government to do so carry out the necessary work to maintain the country’s highways without needing the money from these taxes.

It is not clear, however, how much savings would be passed on to consumersand Republicans were quick to describe the proposal as an electoral “trick” that, moreover, would only serve to increase already rampant inflation.

Biden wanted to send a message to conservatives, making sure the price problem doesn’t lie in the lack of U.S. crude production.but that the country’s oil companies don’t refine enough oil due to the closure of refineries during the pandemic.

Tomorrow, US Secretary of Energy Jennifer Granholm will meet with executives from many of these companies, such as Chevron or ExxonMobil, to try to find solutions to the historic increase in fuel prices.

“We will ask them what their capacity is” production, Granholm explained during the daily White House briefing shortly after Biden’s speech ended.

He also made it clear that part of the reason he will be meeting with directors is to see how the price cut that would result in the elimination of federal taxes could be passed on to consumers.

The head of Energy admitted the suspicion that exists among oil companies, especially after the letters Biden sent last week to the executives of seven of these companies. demand “immediate” action. to cope with the historical price increase.

For this reason, Granholm defended that he will go to the meeting “no lines drawn in the sand” and that he will honestly discuss with executives how to turn the broad benefits these companies have reaped into relief for consumers.

Furthermore, the Secretary of Energy has called on these companies to do so strengthen the financing of renewable and low-carbon energy, such as solar or nuclear, in order to enable an energy transition and avoid dependence on fossil fuels.

The US administration mainly blames to the invasion of Ukraine ordered by the Russian president, Vladimir Putin, of the increase in the price of fuel, and argues that it is the price that the Americans must pay so that Russia does not “get away with it”.

The price of a gallon of gasoline in the United States reached June 11 last year the 5 dollarsa record that occurred when the country is experiencing the highest inflation in the last 40 years.

A year ago, in June 2021, the average price of a gallon of gasoline (the measure used by gas stations in the United States, instead of the liter) was $ 3.07, practically two dollars below the current one.

Also, in 20 of the 50 states in the United States, prices are above $ 5 per gallon, especially on the country’s west coast.

Source: EFE