United States: In an effort to cushion rising fuel prices ahead of the midterm election, US President Joe Biden urged major oil companies to stop "war profiteering" and use record profits to increase domestic production.
In contrast to helping millions of Americans coping with high gas prices at the pump, Biden alleged that oil and gas companies were enriching their shareholders and making money from the "wind of war" in Ukraine.
On Monday, the president urged energy producers to increase production, invest in new refining capacity and lower costs for American consumers.
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He made the remarks while standing in the Roosevelt Room of the White House with Treasury Secretary Janet Yellen and Energy Secretary Jennifer Granholm. "If they don't do that, they're going to pay more tax on their excess profit and face other sanctions," he said.
It's time for these businesses to stop making money from war, meet their domestic obligations, and give the American people a break while they succeed.
However, any new tax is unlikely to garner substantial support on Capitol Hill, where Democrats would need at least 10 Republicans to crack a filibuster in the Senate. Biden said his administration would work with Congress to explore possible penalties.
According to the Associated Press, after ExxonMobil, Chevron and Shell reported record profits in recent weeks despite nationwide gas prices remaining high, Biden will bring up the idea of implementing an unexpected tax.
According to a White House official, ExxonMobil, Chevron, Shell, BP, ConocoPhillips, and TotalEnergy made more than US$100 billion in profits over the past two quarters. This is higher than the previous full year and is more than 2.5 times what they did in the same quarters of 2021.
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In an effort to hurt Democrats' chances in next week's midterm elections, which will determine whether the party retains control of Congress, Biden and Democrats have pointed fingers at energy corporations.
As they try to sell voters on Biden's economic record, the administration is grappling with the political fallout of high fuel prices, which rose to the national average of US$5 per gallon (3.79 liters) in the summer. According to the American Automobile Association, the average national gas price is currently $3.76 USD per gallon.
Biden has repeatedly urged energy companies to lower pump prices, accusing some of doing so while the world faces an energy crisis that has been made worse by the conflict in Ukraine.
But as he embraced the notion of an unexpected tax, a suggestion some progressive Democrats had previously urged the White House to consider, his speech signaled an increase in rhetoric.
Voters going to vote on November 8 still prioritize the economy and inflation as their top two issues. Any business that is experiencing record profits in times of war, according to the president, "has a responsibility to act in the best interest of its consumers, their community, and their country."
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Biden said the American people will determine who is backing him and who is only concerned with his financial gain. The president is the most recent Democrat to support the idea of taxing astronomical profits.
California Governor Gavin Newsom requested a special session of the legislature in December to allow lawmakers to consider introducing an unexpected tax in the state, where fuel costs, on average, US$2.50 more expensive than it is nationwide.