As we head into the Memorial Day weekend, a lot of attention is being paid to the price of gasoline. This is no surprise since over 36 million travelers are expected to hit the roads across the country this weekend - at a time when prices for the crude oil used to make fuels are climbing.
AFPM has joined five other associations to call on the Governors of eight states to reject a recent plea from the Auto Alliance – the leading advocacy group for automakers – to increase subsidies and other incentives for electric vehicles (EVs) and zero-emission vehicles (ZEVs), further distorting a market that has failed to materialize despite already receiving generous handouts.
Fuel supply restrictions resulting from hurricanes and other natural disasters, often lead to price increases as the market reacts to rebalance supply and demand. To protect consumers, many states have enacted price gouging laws that limit a merchant’s ability to raise prices during an emergency.
Ethylene, a key building block in plastic and vital to our country’s manufacturing industry, has been thrust into the spotlight due to Hurricane Harvey’s impact on its production process.
Hurricane Irma passed through Florida and into the Southeast over the weekend, and our thoughts and prayers are with the state and its residents as they begin to recover from this devastating storm.
As Hurricane Florence approached the East Coast this week, nearly two million residents throughout the Carolinas, Maryland and Virginia were placed under evacuation watch.
Governor Gavin Newsom continues to blame fuel refiners for California’s highest-in-the-nation fuel prices. He couldn't be more wrong. The problem and solution to much of California’s fuel price challenge can be found in Sacramento policy. Take a look to better understand the role of policy in regional price differences, why it’s inaccurate to equate “margins” or “refinery cracks” with “profits,” and why windfall profit taxes are a known policy failure.
AFPM President and CEO Chet Thompson issued the following statement regarding President Biden’s suggestion that a Windfall Profit Tax should be considered to address fuel supplies and prices: “Once again, the President is more worried about political posturing before the Midterms than he is about advancing energy policies that will actually deliver for the American people."
Earnings in commodities-based industries tend to be cyclical. Because of the up-and-down reality of refining, it would be a mistake to regulate or legislate based on the high points. A few quarters of earnings don’t provide an accurate representation. That context is important for answering the question of what happens with refinery profits and whether using earnings to “buy back” stock from shareholders is an appropriate use of those funds.