Stop war profiteering, or be ready to pay windfall tax, Biden tells oil companies

USPresident Joe Biden has called on oil and gas companies to use their record profits to lower costs for Americans and increase production, or else be ready to pay a higher tax rate. Speaking at the White House on Monday, Biden said that while such companies are making money, Americans are paying a bomb to fill up their car tanks.

The remarks came days after US oil goliaths ExxonMobil and Chevron announced record profits, proof of how the industry has benefited from a rise in crude prices following Russia's invasion of Ukraine.

Also Read:Movement of ships in Black Sea corridor is 'unacceptable', says Russia

Add WION as a Preferred Source

The oil industry “has not met its commitment to invest in America and support the American people,” Biden said. They’re not just making a “fair return”, but they’re making “profits so high it is hard to believe,” he added.

“Their profits are a windfall of war,” he said, referring to the conflictravaging Ukraine. He further said that these companies have a responsibility to act.

“I think it’s outrageous,” he said. Biden said that if they passed those profits on to consumers, gas prices would register a fall of at least 50 cents.

He threatened that if they fail to do so, they should be ready to pay a higher tax and other penalties.

“If they don’t, they’re going to pay a higher tax on their excess profits, and face other restrictions,” he said.“It’s time for these companies to stop war profiteering.”

The White House will work with Congress to look at these options and others.

Beyond global events, the oil sector has experienced higher refining margins, partly as a result of plant operational concerns.

Gasoline prices have increased as a result of the wide margins, a sensitive topic for American voters as the midterm elections approach.

(with inputs from agencies)