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The pain at the pump in 2022 was felt by all Americans due to the fact price to fuel up topped $6 a gallon in certain places, like California. In light of oil companies bringing in record profits as consumers foot the bill, many lawmakers have called on executives to be much more transparent about their surpluses — and just how that cash is getting used.
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On Aug. 3, your house Committee on Energy & Commerce stated that Committee Chairman Frank Pallone, Jr. (D-NJ) have been in contact with four associated with oil that is major asking for this clarity, demanding to know how profits are being used and what the companies were doing to help curb gas prices.
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As noted in the statement, the quarterly earnings of the top four companies was almost $50 billion combined, including Exxon reporting profits of $17.9 billion (which the committee noted is the highest quarterly profit of any oil company in history), Chevron reporting $11.6 billion, Shell reporting $11.47 billion and BP reporting $8.45 billion.
Pallone wrote in his letters to each company, “As one of the largest oil that is private in the field, your organization is put to greatly help alleviate Americans’ pain during the pump, but i will be concerned that you will be more dedicated to rewarding company executives and shareholders.”
His outreach follows motions that are similar March, as well as a committee hearing with oil CEOs in April. While the pressure on oil companies has likely led to prices going down somewhat in the past several weeks — CNBC reported in mid-August that the average that is national a gallon of gas has become $3.99 and it has fallen going back 58 market sessions — lawmakers are nevertheless keeping track of the problem.
In California, a brand new bill has become on Gov. Gavin Newsom’s desk — one which would require oil companies to record these large profits for a basis that is monthly. Doing so would help shed light on “the difference between average cost they pay for a barrel of crude oil and the price that is average charge for the finished barrel of gasoline,” per Consumer Watchdog, who published a news release concerning the initiative. This type of initiative is especially relevant in California, where drivers are paying $1.25 more per gallon than many other drivers throughout the nation, as noted because of the news release.
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The SB 1322 bill, introduced by California Senator Ben Allen, passed the continuing state Senate by a vote of 29-8. As Allen said via press release, “California drivers have had enough. SB 1322 will bring transparency that is much-needed oil companies’ true costs to do business.”
Jamie Court, president of Consumer Watchdog, also noted the disparity, stating, “Recent quarterly profit reports suggest California oil refiners are pocketing significantly more than $1 per gallon from the recent price spikes during the pump. That’s unconscionable*)Discover that is.”( What Is the Highest Income for Food Stamps in 2022?
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As the press released indicated, the bill has support from the California attorney general, California Public Interest Research Group, Greenpeace USA, SoCal 350 Climate Action, Public Watchdogs and other environmental and policy that is social.
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Selena Fragassi joined GOBankingRates.com in 2022, contributing to her fifteen years in journalism with bylines in Spin, Paste, Nylon, Popmatters, The A.V. Club, Loudwire, Chicago Sun-Times, Chicago Tribune, Chicago Magazine among others. She currently resides in Chicago together with her rescue pets and it is taking care of a debut fiction that is historical about WWII. A degree is held by her in fiction writing from Columbia College Chicago.
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