Californians still paying highest prices in the nation for gas
Gas prices have dropped several cents over the last week, but Californians are still paying the highest prices in the nation, with drivers in Los Angeles County paying an average of $5.94 per gallon of regular unleaded.
House Democrats on Wednesday unleashed on oil executives and blamed the industry for skyrocketing oil and gas prices.
"Why is the price of oil coming down, but the price at the pump is not?" asked Rep. Diana DeGette, D-Colo.
According to Triple A, the national average for a gallon of gas is now at $4.16, up from a $1.29 just a year ago.
In LA, the average price is $5.96 a gallon.
The Biden Administration has ordered the release of oil from the U.S. stockpile, to help ease prices that spiked following Russia's invasion of Ukraine.
"The last time we saw price increase like this may be to the presidency of Jimmy Carter," said Rep. Gary Palmer, R-Ala.
Republicans squarely blame what they called the White House's anti-American energy policies, like shuttering the keystone pipeline.
"This is the Biden price hike and it's been climbing since he took office," Rep Cathy McMorris Rodgers, R-Wash., said.
Professor of politics at Claremont McKenna College, Jack Pitney, weighed in on whether presidents or even Congress actually have any power when it comes to controlling the price of oil.
"There's a legitimate debate about energy policy, about whether we should be doing more to encourage fossil fuel production, perfectly legitimate arguments on both sides. But in the short run, there really isn't a whole lot President Biden can do."
Oil executives testified that they have no control over the markets.
"We do not control the market price of crude oil or natural gas, nor of refined products, like gasoline and diesel fuel, and we have no tolerance for price gouging," the CEO of Chevron, Mike Wirth, told House Representatives.
Lawmakers also put the spotlight on oil industry profits, which came in at nearly $77 billion for the six companies that testified Wednesday. Last year, two of them, Exxon and Chevron, reported their most profitable year since 2014.
Professor Pitney said there are a number of factors driving prices higher.
"Global demand, global supply and the effects of the pandemic."
Oil execs credit post-pandemic demand for the boost in prices.
New Jersey Congressman Frank Pallone suggested companies increase production and decrease buybacks, though when he pushed for a halt to dividends and buybacks, he was told that was unlikely by one oil executive.
"I can't commit...I can't commit to a reduction in buybacks and dividends."
Pallone said oil companies are on track for another year of record record profits.
Triple A said gas prices in Southern California depend heavily on gas production at local refineries, and when refineries have big issues, prices here surge even higher.
