The oil industry says the Granholm conference will send a “positive signal” | Government. & Politics

MATTHEWDALY-The Associated Press

Washington (AP) —Meeting with Energy Secretary Jennifer Granholm to lower gas prices and increase domestic oil supplies was constructive, but did not make significant progress, representing the oil industry and refiners. The group said on Thursday.

The meeting between Granholm and other senior officials President Joe Biden urges Congress to suspend federal taxes on gasoline and diesel fuel As a way to mitigate high gas prices that have frustrated drivers and spurred inflation.

The Democratic president also called on the state to suspend its gasoline tax or provide similar relief, and made public criticisms of the energy industry by prioritizing profits over production.

“It doesn’t relieve all the pain, but it will be a big help,” Biden said Wednesday, referring to the national average of $ 5 per gallon of gas. Mr. Biden has played his role and now he wants Congress, the state and the industry to play their respective roles.

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In a joint statement, the American Petroleum Institute and American petrochemical manufacturers said Thursday that the challenges facing their industry came from the Russian war in Ukraine. Shutdown of COVID-19 As a result, demand and production have declined.

The meeting with Granholm “should send a positive signal to the market that the United States is committed to long-term investment in a strong US refining industry and will adjust its policies to reflect that commitment,” the group said. Stated. “Our industry continues to seek opportunities to work with policy makers to unleash US energy, accelerate economic recovery and strengthen national security.”

The meeting was attended by executives from ExxonMobil, Chevron, Marathon and Phillips 66.

The tone of the settlement contrasted with a letter sent this week by Chevron CEO Michael Wirth.

Biden replied that Worth was “slightly sensitive,” adding that he “did not know they would hurt his emotions immediately.”

Biden’s economy has recovered from a pandemic in recent weeks Russia invades Ukraine..

He called for a three-month suspension of a federal tax of 18.4 cents / gallon on gas and a federal tax of 24.4 cents / gallon on diesel fuel on Wednesday. If the gas savings were completely returned to consumers, people would save just under $ 3 to fill 15 gallons of gas.

Biden’s push faces difficult potential in parliament, where lawmakers from both parties have expressed skepticism and complete opposition. Many economists are also wary of petrol tax holidays.

High gas prices pose a fundamental threat to Biden’s election and policy ambitions. They undermined confidence in the economy and did not signal a defense of democratic dominance in the House and Senate in November.

Byden’s past efforts to lower gas prices, such as the release of oil from US strategic stockpiles and the increase in ethanol mixing this summer, are a risk to be carried over to the idea of ​​a gas tax holiday. Pump savings Has not been realized.

The president has little control over prices set by the global market, profit-oriented businesses, consumer demand, and the aftermath of Russia’s invasion of Ukraine and the subsequent embargo. The fundamental problem is the shortage of oil and refineries that produce gas, and the tax exemption period cannot always be solved.

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The oil industry says the Granholm conference will send a “positive signal” | Government. & Politics

Source link The oil industry says the Granholm conference will send a “positive signal” | Government. & Politics

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