Several factors contribute to soaring gasoline prices, but the greed of oil barons is an unlikely explanation no matter what President Joe Biden claims. It's not that energy companies don't want to make a buck; to the contrary, we count on their self-interest to drive the innovation and competition that puts fuel in our tanks. But it's not as if they've grown greedier in recent months. What has actually changed is that the world has become more chaotic even as overregulation and an ideological crusade against petroleum discourage investment and make it difficult for supply to catch up with demand.
In a letter to seven oil companies this week that alternated in tone between begging and berating, Biden complained that "since the beginning of this year, gasoline prices have increased by more than $1.70 per gallon." After first placing blame on Russian President Vladimir Putin's invasion of Ukraine and the resulting economic sanctions, the president pointed at "historically high profit margins for refining oil into gasoline, diesel and other refined products" which he called "not acceptable."
