Big Oil executives defended their record profits against accusations of price gouging in a contentious hearing before the House Energy and Commerce Subcommittee on Wednesday, as record high prices at the gas pump continue to crimp drivers across the country.
In testimony that lasted nearly three hours, executives from six fossil fuel companies, including Exxon Mobil and Chevron repeatedly denied assertions that their firms are holding back production, to keep prices elevated, even as Committee Chairman Rep. Frank Pallone (D-NJ) publicly called out oil producers for “ripping off” American consumers, instead of providing relief.
“They’re buying back their stock at an estimated cost of $40 billion this year,” Pallone said. “Big oil is lining their profits with one hand and taking billions in taxpayer subsidies with the other. Meanwhile, American people are getting ripped off as companies choose to keep production low, so their own profits stay high.”
Supply shortages brought on by the pandemic and the Russian invasion of Ukraine have pushed gas prices to new highs, with the national average price per gallon hitting a record $4.33 last month, according to AAA. Year-over-year prices have increased more than 40 percent.
While prices have moderated slightly in recent weeks, they haven’t fallen as steeply as international crude prices, which have declined 23 percent from $139 per barrel in early March to $103 on Wednesday. That has driven allegations of price gouging by Democratic lawmakers.
To see the full report from Akiko Fujita at Yahoo Finance, click here.