Yesterday, United States President Joe Biden officially called for a federal tax holiday on gasoline taxes. This proposed holiday would last three months, with the hope of driving down steadily rising gas prices throughout the country. However, Biden faced an immediate opposition to this plan, not only from business analysts and lawmakers who didn’t see the idea helping, but from oil companies.
“At the end of the day, the problem is this: The electric vehicle environment is on the horizon. It’s out there somewhere, 10 years from now, 15 years from now, 20 years from now, it’s going to happen,” Bob Yawger, managing director of energy future strategies at Mizuho, told NBC. “And so, you’re trying to tell these guys that they need to crank it up as they’re drifting into that eventuality? That’s a tough sale, and they’re making money right now for the first time in years.”
Biden has made it no secret that he’s no fan of the oil industry, placing the blame on them and their record profits for ongoing gas price inflation. During a recent event, Biden said that oil company Exxon made “more money than God” in inflation-boosted profit.
Earlier today, I called on Congress to suspend the federal gas tax for three months and for states to provide similar relief.
I’m also urging oil companies to increase refining capacity and gas stations to pass along the decrease in oil prices to lower gas prices. pic.twitter.com/Hrk9t3mOuq
— President Biden (@POTUS) June 22, 2022
“Your administration has largely sought to criticize, and at times vilify, our industry,” Chevron CEO Michael Wirth said in a letter to Biden. “These actions are not beneficial to meeting the challenges we face.”
Biden is set to meet with various oil CEOs today to discuss the idea. “I hope they’ll come to the table with some real ideas and practical steps in the near term,” Biden said Wednesday. “And I’m prepared to act quickly and decisively on the recommendations if that makes sense to address the immediate challenge in front of us and the American people.”