Gas Group Pushes Back On Biden Blaming Industry For High Fuel Prices


As inflation pressures mount on Biden’s administration, including higher gas prices, the president has requested the FTC to investigate any illegal conduct of the oil and gas sector.

Frank Macchiarola stated that “this is a distraction from the fundamental market shift which is taking place” and that government decisions are making poor choices that will only make things worse.

As the economy recovers, demand has increased and is now outpacing supply. The administration’s continued refusal to allow Americans to access America’s energy supplies and to cancel important infrastructure projects is another factor that has contributed to the imbalance.

Instead of launching investigations into markets that are regulated, closely monitored every day, or pleading to OPEC for more supply, we should encourage the responsible and safe development of American-made oil. It was reported that Biden blamed the private sector for inflation. This includes the oil and gas industry.

It was reported that the world’s oil reserves fell to their lowest level since early 2015. This was due to a combination of decreased drilling during the pandemic and a recent increase in economic activity. The International Energy Agency stated that this problem could be soon resolved as the world’s oil production is expected to increase by 1.5 million barrels per day for the remainder of the year.

Biden is still focused on America’s green economy and supporting it through his infrastructure investments and social safety net bills. These investments are made alongside the cancellations of pipeline projects like Keystone XL.

President Joe Biden has asked the FTC to investigate whether oil companies have illegally increased prices while consumers are paying high pump costs. “The Federal Trade Commission is authorized to examine whether illegal conduct is causing families high pump prices. Biden wrote to Lina Khan, FTC Chairwoman, on Wednesday in a letter.

He said that prices at the pump have continued rising despite falling refined fuel costs and increasing industry profits. “In the past month, the unfinished gasoline price has fallen more than 5% while the gas prices at the pumps have increased by 3%.” This unexplained gap in the prices of unfinished gasoline versus the average pump price is much higher than the pre-pandemic average.

Biden stated that the increased cost of energy is causing significant profits for oil and natural gas companies in America. He noted that the two largest U.S. oil and natural gas companies are expected to almost double their income in 2019.

According to the Labor Department prices for gas rose by 6.1 percent last month. Prices were about 24 percent higher in April 2019 than in the same month of 2019.

It was reported that Khan agreed to conduct the investigation and said regulators would investigate whether there were any ‘collusive or other illegal’ practices that affected gas prices.