Power costs are nonetheless on the rise all around the world as nations proceed to sanction Russia for his or her ongoing invasion of Ukraine. As a result of lack of Russian oil exports, home oil producers have needed to choose up the slack. Nevertheless, within the eyes of United States President Joe Biden, their present efforts are usually not enough.
Throughout a public speech on the White Home on Monday, Biden chastised American oil corporations for elevating costs with out proportionately growing manufacturing, accusing them of wartime profiteering. “They’ve a accountability to behave within the curiosity of their shoppers, their neighborhood and their nation, to spend money on America by growing manufacturing and refining capability,” Biden mentioned.
Biden conceded that the rising value of gasoline is essentially on the shoulders of Russian President Vladimir Putin, however that home oil producers nonetheless have to do their half to maintain up with the demand. As such, the President warned that, ought to power costs proceed to rise, he’s contemplating enacting a hefty tax hike on oil corporations to make up the distinction.
Within the final six months, 6 of the most important oil corporations remodeled $100 billion in income.
$100 billion in lower than 200 days.
If these corporations have been taking common income on refining, as a substitute of the income they’re making at the moment, gasoline costs would come down round 50 cents.
— President Biden (@POTUS) November 1, 2022
This isn’t the primary time Biden has made such a menace, however western oil producers have countered that greater taxes would solely disincentivize them additional. ““Rising taxes on American power discourages funding in new manufacturing, which is the precise reverse of what’s wanted. American households and companies need to lawmakers for options, not marketing campaign rhetoric,” American Petroleum Institute president Mike Sommers mentioned in an interview with The Hill.
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