President Joe Biden called on U.S. oil refining companies to produce more in order to help alleviate high prices on consumers.
During a time of war, historically high refinery profit margins being passed directly onto American families are not acceptable.
The letter said that immediate actions must be taken to increase the supply of gasoline, diesel, and other refined product.
As sky-high energy costs add to inflationary concerns, Biden called. The national average for a gallon of gas went over $5 for the first time over the weekend.
The national average is now $5.014, which is 54 cents more than a month ago and nearly $2 more than last year.
Biden said that his administration is prepared to use all reasonable and appropriate Federal Government tools to increase refinery capacity and output.
The decline in refining capacity is a factor in the rise of fuel prices. As economies restart and people travel again, demand is back, but supply is tight.
The loss of Russian refined products has made the situation worse.
Refiners can't just ramp up output and use up all their capacity. Some refining companies are being changed to make alternative products.
3 million barrels per day of global capacity has been offline since the start of the Pandemic, according to Biden.
The price of oil and gas are two different things.
The margins for refining gasoline and diesel have tripled since the beginning of the year.
The president wrote a letter to global giants such as Shell and Marathon.
There is a crunch that families are facing. Biden told companies to work with his administration to come up with solutions to the crisis.
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