New Jersey congressman urges oil companies to address issue of increased gasoline prices
Rep. Frank Pallone Jr. (D-6), chair of the House Energy and Commerce Committee, has urged executives of various oil companies to explain the increased prices of fuel, according to an article from NJ Advance Media.
Pallone asked the executives of British Petroleum (BP), Chevron, Devon Energy Corporation, ExxonMobil, Pioneer Natural Resources and Royal Dutch Shell to testify on April 6 at a hearing regarding why gasoline prices have increased.
The hearing is being held in response to the average price for a gallon of regular gasoline rising to $4.331 last Friday, which is a record-high. In New Jersey, the price was $4.297, according to the article.
“As American families confront high gasoline prices caused by the volatility of global energy markets and Vladimir Putin’s unprovoked invasion of Ukraine, I am deeply concerned that the oil industry has not taken all actions within its power to lower domestic gasoline prices and alleviate Americans’ pain at the pump,” Pallone said. “Instead, the industry appears to be taking advantage of the crisis for its own benefit.”
In response to Russia’s invasion of Ukraine, the U.S. has stopped its oil imports from Russia, according to the article.
Pallone said that as a result, the oil industry has bought back stock to pay its investors rather than spending its profits to produce more oil and that the oil industry still has more than 9,000 permits that are not being used.
The Biden administration has released millions of gallons of oil taken from government stockpiles in order to address the increase in the prices for gasoline, according to the article. The administration also considered allowing the sale of gasoline with higher levels of ethanol, as it is cheaper to produce.
“By keeping domestic oil production low and funneling revenue back to investors and executives, the oil industry is keeping energy prices — and profits — artificially high,” Pallone said.
