“In times of war, the refinery’s profit margins far above normal, passed directly to American families, are unacceptable,” Biden wrote in a letter to companies such as ExxonMobil, Valero Energy and Marathon Petroleum, which sees Reuters. “The refinery’s lack of capacity – and the consequent unprecedented profit margins of the refinery – are mitigating the impact of my administration’s historic actions to address Vladimir Putin’s rising prices and increasing costs for consumers,” the president wrote. President Biden also warned companies that “my government is ready to use all the reasonable and appropriate tools of the federal government and the emergency authorities to increase the capacity and production of the refinery in the short term and to ensure that every part of this country it is properly supplied “. Gasoline prices hit $ 5 a gallon last week, the highest ever, averaging $ 5,014 / gallon on June 15, compared to the all-time high of $ 5,016 just yesterday. As petrol prices rise and inflation hits a four-decade high, President Biden is trying to find solutions to lower the price of the pump ahead of the November midterm elections. So the rhetoric against the oil companies is intensifying. Late last week, President Biden called on Exxon and other oil companies for excessive profits, saying “Exxon has made more money than God this year.” Rising oil prices, recovery in demand after COVID and limited refining capacity are the main reasons for record gasoline prices in the US and many other countries. Crude oil prices are the single largest determinant of gasoline prices in the United States, accounting for more than 53 percent of the average retail price per gallon. In addition, in the United States, approximately 1 million bpd of refinery capacity has been permanently shut down since the onset of the pandemic, as refineries have chosen to either shut down loss-making facilities or convert some of them into biofuel facilities. In the United States, the refinery’s operating capacity was just over 18 million bpd in 2021, the lowest since 2015, per EIA data. By Tsvetana Paraskova for Oilprice.com More top readings from Oilprice.com:
