It’s Coming…$6 Gas is Next

June 23, 2022

Get ready to mark off another record-high gas increase on your President Biden bingo card. We had hoped the president and his administration would have come to their senses by now, but they are digging their heels in and watching as gasoline prices continue to increase. President Biden recently wrote a letter demanding oil companies boost their supply. If only he sent it to his administration and told them to change their policies. 

The Wall Street Journal  editorial board writes:

“In his letter Mr. Biden orders the refiners to increase supply pronto, but they have to make business decisions based on long-term market expectations. The same is true for oil producers. The President slams refiners for reaping record profits. Does he not understand markets? Refining petroleum is a low-margin business, and the companies lost money early in the pandemic as demand for gas and other fuels fell. Now margins have widened as demand rises again and the industry’s capacity to produce them has shrunk.” 

The hypocrisy is starting to push some companies to fight back. The most notable being Chevron. 

“Chevron CEO Mike Wirth said recently that refineries are shutting down or being repurposed for renewable fuels because ‘the stated policy of the U.S. government is to reduce demand for the products that refiners produce.’ When companies are told that demand for their product will become obsolete, it’s no surprise that they don’t invest in supply.” 

On Thursday, Energy Secretary Granholm is slated to meet with top oil executives. Hopefully, Secretary Granholm will be open to listening to oil and gas companies and will be open to an actual solution rather than a political standoff. 

The Wall Street Journal put it best: “Mr. Biden demands that refiners propose ‘concrete ideas’ to immediately increase capacity. How about his Administration stop trying to put them out of business?”

If they don’t, the American people will see $6 gasoline soon.