Profit From Lower Consumer Prices Or Face Punishment For ‘War Profits’, Biden Warns Oil Cos | So Good News
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US President Joe Biden said on Monday he wants to seek taxes on oil companies only if they give their profits to lower consumer prices and increase production, criticizing their “war profiteering.”
His comments came days after oil giants ExxonMobil and Chevron announced record earnings, underscoring how low oil prices after Russia’s invasion of Ukraine have boosted the industry.
Natural gas prices have also risen, thanks to European efforts to offset losses from Russia.
“Their profits are the windfall of war,” Mr. Biden told reporters Monday, referring to the powerful businesses he gets.
Biden said companies have a “responsibility to act” beyond the selfishness of shareholders, and to help consumers by improving their production and cleaning.
If businesses don’t cut rates, they will “pay more taxes on their earnings and face more restrictions,” Biden said, adding that officials will work with Congress to address the issue.
Although oil and gas prices have fallen recently, they are still much higher than before Russia’s invasion of Ukraine in February.
Big profits previously reported by TotalEnergies and Shell have reignited a European debate over profits tax.
“It’s time for these companies to stop profiteering from war … give the American people a break and they’re doing well,” Biden said.
In addition to the global trend, the energy sector has also seen a gradual increase, in part due to difficulties in operating at certain prices.
The strong margins have translated into higher oil prices, a critical issue for American voters as the November 8 midterm elections approach.
‘Unacceptable’
On Saturday, Mr. Biden wrote on Twitter that the oil industry made billions in profits this quarter and “are using these profits to pay off their shareholders instead of investing in production and reducing the costs of the American people.”
“It is unacceptable,” he wrote, adding that it was time for the big oil companies to help lower prices for consumers.
American families have been squeezed by rising inflation, making the issue top of voters’ agendas.
In the third quarter, ExxonMobil’s profit nearly tripled to $19.7 billion, an industry record, while Chevron’s profit rose 84 percent to $11.2 billion.
ExxonMobil Chief Executive Daren Woods, in response to criticism that the company will return profits to the American people, said on Friday that this is what they are doing as part of every quarter.
But this was answered by the President, who said in another tweet that “delivering profits to shareholders is not the same as lowering prices for American families.”
Frustration and anger over economic problems such as inflation often go to the president and the party in power.
Average US pump prices rose $5 a gallon in June, the biggest hit.
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