As U.S. president Joe Biden faces pressure over rising gasoline prices, he demanded oil companies explain why more gasoline is not in the market.
Biden wrote to executives from Marathon Petroleum Corp (NYSE:MPC), Valero Energy Corporation (NYSE:VLO), and Exxon Mobil Corp (NYSE:XOM) and complained that they had reduced oil refining to beef up their profits, according to a copy of the letter seen by Reuters.
"At a time of war, refinery profit margins well above normal being passed directly onto American families are unacceptable," Biden wrote.
"The lack of refining capacity - and resulting in unprecedented refinery profit margins - are blunting the impact of the historic actions my Administration has taken to address Vladimir Putin's Price Hike and are driving up consumer costs," he wrote.
The letter is also being sent to Phillips 66 (NYSE:PSX), Chevron Corporation (NYSE:CVX), BP Plc (NYSE:BP), and Shell Plc (NYSE:SHEL), Reuters reported citing a White House official.
The president is looking for "concrete ideas" to bolster oil production, which is expected to hit record highs in the United States next year. He has also asked why they may have cut such capacity in the last two years.
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