President Joe Biden is asking the Federal Commerce Fee to look into behavior from energy companies as prices on the pump hover round a seven-year excessive.
In a letter to Chair Lina Khan Wednesday, Biden mentioned there’s “mounting evidence of anti-consumer behavior by oil and gas companies.” The letter famous that prices on the pump have remained excessive regardless of a decline within the value of unfinished gasoline. “This unexplained large gap between the price of unfished gasoline and the average price at the pump is well above the pre-pandemic average,” the letter mentioned.
The letter added that the “two largest oil and gas companies in the United States” — that are Exxon and Chevron primarily based on market capitalization — are on monitor to nearly double their web earnings in contrast with 2019 ranges, whereas the 2 companies have additionally introduced inventory buybacks and dividend hikes.
Biden’s newest request comes as the administration tries to quell the surge in gas prices and its contribution to inflation throughout the financial system. In August the administration referred to as on OPEC and its oil-producing allies to increase output and likewise requested the FTC to examine price-gouging on the pump.
The administration has repeatedly mentioned that it is analyzing the instruments at its disposal to alleviate a number of the burden on customers, which might embody tapping the Strategic Petroleum Reserve.
The nationwide common for a gallon of gas stood at $3.41 on Wednesday, in accordance to knowledge from AAA. That is up from $3.31 one month in the past, and $2.12 one yr in the past.