Biden threatens to tax profits of oil companies that do not lower fuel prices

The president of United States, Joe Bidensaid on Monday that it is time for the giants of the Petroleum stop “speculating in war,” a reference to the record profits of these companies as households across the country grapple with runaway inflation.

“They have an opportunity to do it. Lower prices for consumers at gas stations. If they don’t, they will have to pay more taxes on their exceptional benefits and face other restrictions,” he explained. Biden to journalists, days before the mid-term elections in which his Democratic Party is playing for control of Congress.

The president’s comments come after the giants of the sector published record profits thanks to an increase in crude prices that soared after the Russian invasion of Ukraine.

The American hydrocarbon giants ExxonMobil y Chevron made huge profits in the third quarter, according to data from last week.

ExxonMobil earned $19.7 billion, a record level, while Chevron it earned $11.2 billion, just shy of its previous quarter record.

Under the effect of the soaring energy prices fueled by the war in Ukraine, European groups also made significant profits: Shell earned $6.7 billion TotalEnergies 6,600 y Eni 5.9 billion.

This situation contrasts with what happened two years ago when, in the midst of a pandemic, energy prices collapsed and generated large losses for hydrocarbon producers.

“There are discussions in the United States about the possibility of our sector turning over part of its profits directly to the American people,” the head of the ExxonMobil, Darren Woods, in a conference call. “It’s exactly what we do with our quarterly dividends,” he said.

“I can’t believe I have to say this, but dumping profits on shareholders is not the same as lowering prices for American families,” President Biden then tweeted.

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