As high gas prices become the accepted norm for the time being, President Joe Biden seemingly refuses to take the blame and is instead blaming oil refineries. However, there is evidence that the president's policies may be to blame for $5 per gallon gas averages.
As Arizona residents pay an average of nearly $5.40 per gallon of gas, The Wall Street Journal Editorial Board reported that Biden penned a threatening letter to oil and gas company executives, noting that he was surprised that prices would still rise while supply isn’t keeping up with demand, and the board noted that his seemingly misguided conclusion could be that “the problem must be greedy oil companies making too much money.” The WSJ Editorial Board came to a different conclusion.
"A major culprit is U.S. government policy. Some older refineries have closed because companies couldn’t justify spending on upgrades as government forces a shift from fossil fuels,” The WSJ Editorial Board wrote. "They also have to account for the Environmental Protection Agency’s tighter permitting requirements—the agency recently challenged a permit for an Indiana refinery—and steeper biofuel mandates.”
Biden’s pointed letters to executives at seven major refineries pointed out that their profit margins were “above normal,” according to the New York Post.
“Your companies need to work with my administration to bring forward concrete, near-term solutions that address the crisis and respect the critical equities of energy workers and fence-line communities," the president added in his letter to ExxonMobil CEO Darren Woods.
According to the New York Post, Biden sent similar letters to executives at Chevron, Shell, Phillips 66, BP, Marathon and Valero.
Amid the rising prices, the U.S. Environmental Protection Agency (EPA) is apparently putting out renewable fuel standards for 2022, which groups, including the American Fuel and Petrochemical Manufacturers, noted were not realistic as gasoline consumption falls from last year’s levels as prices rise.
Moreover, The Wall Street Journal noted that the administration’s policies are requiring refiners to blend 10% more biofuel, and they will be at capacity for the amount of ethanol and biodiesel that can be processed into the country’s fuel supply.
Even as the national average price for a gallon of gasoline remains above the $5 mark, the trend is creating political landmines for Democrats ahead of the November midterm elections, according to the New York Post.
An AAA survey found that motorists in Arizona are paying an average of $5.38, and in some counties, $6 gasoline could be just around the corner, with the price in Maricopa County up to $5.70 in some areas.
Still, The Wall Street Journal Editorial Board pointed out that instead of taking oil companies to task to boost capacity, it urged the administration to quit trying to put them out of business. The board noted that at a stop in Newcastle, New Hampshire last fall, Biden pledged to “end fossil fuels.”
As Biden seeks a short-term solution to higher gasoline prices, The Wall Street Journal Editorial Board maintained that he should consider that oil companies have to make their business plans on long-term trends. The board noted that the companies lost money during the pandemic and their margins have increased as demand rises and capacity has contracted.