While the administration threatened action against oil companies if consumer prices rise, action is more likely to be taken at the state level.
President Joe Biden warned oil companies that his administration will take action if they use Hurricane Ian as excuse to raise prices at the pump. However, it’s not yet clear what Biden’s plans are for cracking down on potential price gouging.
Biden, speaking at the White House Conference on Hunger, Nutrition, and Health on Wednesday, said Hurricane Ian will cause only a small disruption to oil production and that he will not tolerate energy companies profiting off the natural disaster. Biden’s remarks come as gas prices have fallen, boosting the president’s political prospects. However, the federal government has limited tools to directly address price gouging and states are expected to protect consumers as the storm continues to travel up the coast.
„Do not—let me repeat, do not—do not use this as an excuse to raise gasoline prices or gouge the American people,“ Biden said in a warning to the oil and gas industry.
Biden said that the storm has only affected the daily production of about 190,000 barrels of oil, which he said is less than 2 percent of the country’s daily production.
„This small, temporary storm impact on oil production provides no excuse—no excuse—for price increases at the pump.
