Biden tells oil companies in letter ‘well above normal’ refinery profit margins are ‘not acceptable’

Biden tells oil companies in letter ‘well above normal’ refinery profit margins are ‘not acceptable’


President Joe Biden on Wednesday called on U.S. oil refining companies to produce more, saying they need to help alleviate the burden of high prices on consumers.

“At a time of war – historically high refinery profit margins being passed directly onto American families are not acceptable,” the president said in a letter to oil companies including Exxon Mobil and Chevron.

“[C]ompanies must take immediate actions to increase the supply of gasoline, diesel, and other refined product,” the letter added.

Biden’s call comes as sky-high energy costs add to inflationary concerns across the economy. The national average for a gallon of gas crossed $5 over the weekend for the first time on record, according to AAA.

The national average now stands at $5.014, which is 54 cents more than a month ago, and $1.94 more than last year.

Biden said that his administration is prepared to use “all reasonable and appropriate Federal Government tools and emergency authorities to increase refinery capacity and output in the near term.”

Refining capacity has dropped since the pandemic took hold, which is a factor in the rapid advance of fuel prices. Demand has returned as economies restart and people travel once again, but supply remains tight.

Loss of Russian refined products has exacerbated the imbalance, with Europe now looking elsewhere for fuel.

Refiners can’t just ramp up output, and utilization rates are already above 90%. Additionally, some refiners are now being reconfigured to make alternate products like biofuel.

Biden noted in his letter that the refining shortage is a “global challenge and global concern,” with around 3 million barrels per day of global capacity offline since the start of the pandemic.

Still, he pointed to the “unprecedented disconnect between the price of oil and the price of gas.”

“Since the beginning of the year, refiners’ margins for refining gasoline and diesel have tripled, and are currently at their highest levels ever recorded,” he said.

Biden noted that the last time oil was trading at $120 per barrel the average price of gas at the pump was about $4.25 per gallon.

Oil prices were trading slightly lower in the wake of Biden’s letter, with West Texas Intermediate, the U.S. benchmark, at $118.45.

The president’s letter was also addressed to global giants BP and Shell, as well as refiners Marathon Petroleum, Valero Energy and Phillips 66.

“The crunch that families are facing deserves immediate action. Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis,” Biden said.

Shares of Exxon, Chevron and the refiners were all down slightly in premarket trading.

This is breaking news. Please check back for updates.



Source

Asia-Pacific markets set to open mixed as investors digest Trump-Xi call
World

Asia-Pacific markets set to open mixed as investors digest Trump-Xi call

The view of Nanjing Road East Pedestrian Mall, the main shopping street in Shanghai. Bruce Yuanyue Bi | The Image Bank | Getty Images Asia-Pacific markets were set to trade mixed Friday as investors assessed the phone call between U.S. President Donald Trump and Chinese President Xi Jinping. Trump and Xi spoke on Thursday and […]

Read More
Harvard files legal challenge to Trump’s effort to block visas for international students
World

Harvard files legal challenge to Trump’s effort to block visas for international students

Cambridge, MA – May 28: Soon to be graduates take photos after Harvard University’s Class Day ceremony on May 28, 2025. Brett Phelps | Boston Globe | Getty Images Harvard University on Thursday filed a legal challenge to President Donald Trump’s efforts to block visas for foreign students planning to attend the Ivy League college. “Singling out […]

Read More
S&P 500 futures are little changed ahead of May jobs report: Live updates
World

S&P 500 futures are little changed ahead of May jobs report: Live updates

Traders work on the floor at the New York Stock Exchange (NYSE), on the day of Circle Internet Group’s IPO, in New York City, U.S., June 5, 2025. Brendan McDermid | Reuters Stock market futures were mostly calm on Thursday evening ahead of a key jobs report that is expected to shed light on the […]

Read More