Biden urges US govt regulator to examine high gas prices

FE Team | Published: November 18, 2021 22:52:03

Joe Biden

WASHINGTON, Nov 18 (AFP): President Joe Biden called on US regulators Wednesday to look into the causes of the nationwide spike in gasoline prices, which he said is hurting workers.
The president last week made fighting inflation a top priority after data showed consumer prices hit a 30-year high in October, fueling a slump in his public approval.
In a letter to the Federal Trade Commission (FTC), Biden took aim at oil companies he says are raising prices at the pump even as their expenses decline and profits soar.
He instructed the agency to look into whether "illegal conduct" is behind the energy price spike.
"I do not accept hard-working Americans paying more for gas because of anti-competitive or otherwise potentially illegal conduct," Biden said in the letter.
Despite signs the US economy has bounced back strongly from the damage inflicted by the Covid-19 pandemic, Biden has paid a political cost as global supply chain snarls caused shortages and drove an uptick in prices of everything from cars to food to gasoline.
The president said the high pump prices are not justified, noting that while the cost of unfinished gasoline has dropped more than five per cent over the past month, retail prices rose three per cent.
At the same time, oil companies "are generating significant profits," with the two largest on track to nearly double net income compared to 2019 and planning major stock buybacks, he said in the letter.