In new letter to President Biden, Senator Reverend Warnock urges the Biden-Harris Administration to do more to fight corporate greed and lower gas prices

Senator Reverend Warnock: “While I work with my colleagues in Congress to provide solutions to lower gas prices, your administration must take additional steps to promote market competition and ensure that corporate interests in the oil and gas sector are not working against families during this time of great uncertainty”

Letter follows questions Senator Reverend Warnock raised on the need for greater scrutiny of oil and gas companies during a Senate Commerce Committee hearing on Tuesday – WATCH HERE

Letter marks Senator Reverend Warnock’s most recent effort to lower costs for Georgia families, following call for federal investigation into price-gouging by ocean carriers, efforts to ease supply chain tensions, and push to cap the price of insulin and prescription drugs

Washington, D.C. – Today, U.S. Senator Reverend Warnock (D-GA) sent a letter to President Biden urging the Administration to immediately increase scrutiny of big oil companies given recent market volatility and swiftly target any corporate greed and profiteering, as well as have the Federal Trade Commission provide an update on all the work being done to curb corporate greed. Since a peak on March 8, 2022, oil prices has been volatile but on the decline. However, despite price declines for crude oil, gas prices at the pump in Georgia have not declined as significantly. In his letter to President Biden, Senator Warnock called attention to how this corporate greed is hurting Georgia workers and families, and pressed the Administration to take action, including directing the Federal Trade Commission to increase scrutiny on anti-consumer behavior in the oil and gas sector, and urgently complete its thorough investigation into the industry.

“While I work with my colleagues in Congress to provide solutions to lower gas prices, your administration must take additional steps to promote market competition and ensure that corporate interests in the oil and gas sector are not working against families during this time of great uncertainty,” wrote Senator Reverend Warnock.“It is my goal that the Federal Trade Commission, under your direction, will increase scrutiny and urgently complete its thorough investigation of the oil and gas sector for anti-consumer behavior.”

Senator Warnock’s letter followed his comments at a Tuesday hearing of the Senate Commerce Committee, focused on ensuring transparency in energy markets, where he questioned industry experts on the need for greater federal scrutiny of oil and gas companies who could be artificially inflating gas prices. These efforts build on Senator Warnock’s work to lower rising gas costs for Georgia families. Senator Reverend Warnock recently introduced the Gas Prices Relief Act, which would suspend collection of the federal gas tax through the end of the year. Senator Reverend Warnock is also a cosponsor of the Big Oil Windfall Profits Tax Act, which would combat corporate greed from oil companies and provide economic relief to working families.

(Watch video of Senator Warnock’s Commerce Committee remarks HERE.) 

The letter can be found here and below: 

Dear President Biden,

As we work to strengthen our economy, alleviate supply chain disruptions, and build a more resilient nation following the COVID-19 pandemic, I am concerned that gas prices in Georgia remain stubbornly high. While I appreciate actions to investigate oil and gas companies for potentially illegal business practices, I urge you to immediately increase scrutiny of these companies given recent market volatility and swiftly target any corporate greed and profiteering. We cannot stand by as companies take advantage of ongoing events to pad their bottom line and enrich investors. In addition, as I work in Congress to address corporate greed and lower costs for hardworking Georgians, I request a briefing on the status of this work from your administration, including input from the Federal Trade Commission.

Prior to Russian President Vladimir Putin’s unjust and barbaric invasion of Ukraine, the West Texas Intermediate (WTI) crude oil price was approximately $92 per barrel. Following the initial attacks by Russia, oil prices quickly rose to over $123 per barrel by March 8, 2022. Despite this swift surge, the price for a barrel of oil has already decreased from its peak. The WTI crude oil price was near $104 per barrel as of April 4, 2022 and under $100 per barrel as recently as April 1, 2022.

While the initial increase in oil prices resulted in a near instantaneous increase in gas prices for consumers, the subsequent decrease in crude oil prices has failed to meaningfully provide relief for Georgas’s families at the pump. According to the American Automobile Association (AAA), the average price for a regular gallon of gasoline in Georgia in late February was $3.40. One week ago, the average price per gallon was $3.95 in my state. Despite a noted decrease in the price for a barrel of oil from its previous peak, the current average price for a gallon of gas in Georgia is $3.86, a reduction of only $0.09 per gallon in a week.

In a statement on March 16, 2022, you highlighted the emerging disparity between the WTI crude oil price and the price Americans are paying at the pump. This case of possible corporate exploitation is underscored by recent actions from oil and gas companies reporting record profits and massive stock buybacks. ExxonMobil previously reported $8.9 billion in profits during the last quarter of 2021, with up to $10 billion in planned stock buybacks. Similarly, Chevron reported a $5.1 billion profit during the last quarter of 2021. The company also recently increased their stock buyback guidance range to $5 billion to $10 billion, previously projected to be $3 billion to $5 billion. These corporations are reaping excessive profits, while consumers in Georgia continue to stretch their budgets—directly transferring money from middle-class communities and struggling families in Georgia to the pockets of wealthy investors.

I proudly joined my colleagues to introduce the Gas Prices Relief Act of 2022, which would provide relief to Georgians by temporarily suspending collection of the federal gas tax. While I work with my colleagues in Congress to provide solutions to lower gas prices, your administration must take additional steps to promote market competition and ensure that corporate interests in the oil and gas sector are not working against families during this time of great uncertainty. It is my goal that the Federal Trade Commission, under your direction, will increase scrutiny and urgently complete its thorough investigation of the oil and gas sector for anti-consumer behavior.

Failing to address this surge in gas prices, as well as the underlying corporate greed driving the increase, harms families in Georgia and across the nation. I will continue to work with my colleagues in the U.S. Senate to lower costs for families, tackle high energy prices, and reign in price gouging. Thank you for your work to ensure our economy is working for all Georgians, and I look forward to supporting additional actions by your administration to lower gas prices and hold corporations accountable if illegal conduct is uncovered.

Sincerely,

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