White House calls for investigation into “discrepancies” between oil price and gasoline costs

The White House on Wednesday called for an investigation into gasoline prices, citing “discrepancies” between oil prices and what people pay at the pump.

Director of the National Economic Council Brian DeeseBrian DeeseSteve Ricchetti is Biden’s right-hand man on Senate Sunday shows – Delta variant, infrastructure dominates White House adviser asks landlords to seek rent aid before evicting tenants MORE wrote a letter to the chairman of the Federal Trade Commission (FTC) Lina khanLina Khan ‘New’ FTC to Trample Rule of Law Hillicon Valley: Senators Highlight China’s Security Threats in Rare Public Hearing | Facebook suspends accounts of NYU researchers who criticized platform Democrats urge Amazon and Facebook to drop Khan’s recusal demands MORE ask it to examine any illegal conduct or potential anti-competitive practices.

“During this summer driving season, there have been discrepancies between the price of oil and the cost of gasoline at the pump,” Deese wrote. “Although many factors can affect gas prices, the president wants to ensure that consumers do not pay more for gas due to anti-competitive or other illegal practices.”

He asked the FTC to examine what he described as an “asymmetric phenomenon” in which gasoline prices rise during oil price spikes more quickly than they fall during price declines.

FTC spokeswoman Betsy Lordan confirmed that the commission received Deese’s letter but declined to comment on its contents “at this time.”

Lordan noted that the agency should work with others, including the Justice Department and state attorneys general for such an investigation.

The letter comes as oil and gasoline prices have risen in recent months, with easing restrictions on coronaviruses resulting in more travel.

New data from the Department of Labor on Wednesday showed gas prices have risen more than energy prices over the past year, with gasoline jumping 42% and energy soaring 24%.

Meanwhile, the White House national security adviser Jake sullivanJake Sullivan Biden envoy tells Brazilian Bolsonaro not to undermine elections: Top Biden advisor report: Making infrastructure deal is an “urgent national security imperative” The Hill’s Morning Report – Brought to you by Facebook – Officers tell the horror of January 6 PLUS called on the group of oil-producing countries known as OPEC + to increase production as part of the cuts linked to the pandemic.

“Rising gasoline costs, if left unchecked, could harm the ongoing global recovery,” Sullivan said in a statement.

“Although OPEC + recently agreed to production increases, these increases will not fully offset previous production cuts imposed by OPEC + during the pandemic before 2022,” he continued. “At a critical time in the global recovery, this is just not enough.”

The United States is not part of OPEC +.

Industry analysts told The Hill they didn’t think an FTC investigation would reveal irregularities.

“I think they are breathtaking,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service. “I wouldn’t want to say it was public relations, but I don’t think the investigations are going to reveal much.”

Instead, he cited high labor costs, a shortage of drivers and refinery closures as contributing factors.

Patrick De Haan, head of petroleum analyzes at GasBuddy, expressed his skepticism about the administration’s efforts to persuade OPEC +.

“You are not going to convince Saudi Arabia to increase oil production according to what the declaration says,” he said.

“You don’t issue a statement calling for OPEC to be made public in the United States without going through your indirect channels and talking directly with Saudi Arabia,” Haan added. “I don’t think the United States did anything that influenced OPEC in any way.”

A major oil and gas trading group also retreated, seeking to blame the administration for the price hikes.

“This is a distraction from the fundamental market shift underway and the ill-advised government decisions that are making matters worse,” said Frank Macchiarola, senior vice president of political, economic and regulatory affairs at the American Petroleum Institute. A declaration.

“Rather than requesting investigations into regulated and monitored markets on a daily basis or pleading with OPEC to increase supply, let us immediately lift restrictions on US energy,” he added.

Analysts have said in the past that high prices were linked more to economic reopening and demand than to specific policies.

A gallon of gasoline cost an average of $ 3.19 Wednesday morning, while U.S. crude oil prices hovered around $ 68 a barrel.

Republicans have repeatedly hammered the Democrats on the rise in gas prices and inflation in general, seeking to link them to President BidenJoe BidenBiden pushes to support Florida schools amid DeSantis Cuomo mask dispute resigns after investigation found he harassed divided female GOP governors over response to COVID-19 PLUS outbreakthe economic and energy agenda of.

Democrats counter that higher prices are a reflection of economic growth and have highlighted the increase in wages and the availability of employment.

–Update at 12:38