Talks between oil refiners, Biden officials end in impasse over Gasoline price
Global News
Refiners cut capacity during the COVID-19 crisis shutdowns, but post-pandemic demand and a global fuel crisis after Western nations sanctioned Russian oil have driven prices up.
Major U.S. oil refiners and U.S. Energy Secretary Jennifer Granholm emerged from an emergency meeting on Thursday on how to lower pump prices with no concrete solutions but a promise to continue talking, according to a source familiar with the discussions.
The two sides entered the meeting with a promise to work together in good faith, but they are still far apart on solutions. The discussion comes at a tense moment for President Joe Biden and Big Oil. The president has criticized its CEOs for reaping huge profits from a fuel supply crunch exacerbated by Russia’s invasion of Ukraine.
Granholm, striking a more conciliatory tone, expressed interest in a refiner proposal to waive summertime gasoline specifications that combat smog but make the fuel more expensive, a source said. She also downplayed a proposal to ban, or limit, fuel exports as a viable short-term option, the source said.
The average price of gasoline was $4.955 per gallon on Wednesday, according to data from the American Automobile Association, 37 cents more than a month ago, and $1.89 more than a year ago.
Refiners cut capacity during the COVID-19 crisis shutdowns, but post-pandemic demand and a global fuel crisis after Western nations sanctioned Russian oil have driven prices up.
Exxon Mobil XOM.N, Chevron CVX.N and other refining giants reported a massive jump in profits at the end of 2021 and the first quarter of this year and have showered shareholders with buybacks and dividends.
The White House has targeted the refining industry’s decision to idle about 1 million barrels per day of production capacity since 2020, arguing they should use their bumper profits to restart plants or units and help fill the supply gap that is driving up prices.
Refiners have a “patriotic” duty to help with supply, the White House has said.
