U.S. oil groups urge Biden to take fuel export ban off table -letter

Oct 4 (Reuters) – The most important U.S. oil commerce teams stated on Tuesday that they’ve “important issues” that the Biden administration is contemplating limiting gasoline exports to decrease shopper costs and urged prime officers to take the choice off the desk, in keeping with a letter seen by Reuters.

The joint letter from the American Petroleum Institute and the American Gas and Petrochemical Manufactures to Power Secretary Jennifer Granholm represents the most recent volley in a conflict between the oil trade and the Biden administration over excessive vitality costs.

President Joe Biden has made battling an energy-led surge in shopper costs a prime precedence and has repeatedly chided oil corporations for incomes bumper income at a time of file gasoline costs.

Biden has repeated these accusations in current weeks as gasoline costs started to tick again up main into the November midterm elections, after weeks of declines.

The thought of limiting U.S. gasoline exports to maintain home vitality costs in test was largely dismissed as unlikely by the oil trade when it first got here up months in the past, however the letter on Tuesday exhibits the trade is turning into more and more involved the administration might transfer forward with it.

In August, Granholm despatched a letter to U.S. refining corporations urging them to focus extra on constructing home inventories of gasoline and diesel, and fewer on exports. She warned that if they didn’t, the administration would wish to think about “emergency measures,” however provided no specifics.

On Friday, Granholm and prime White Home officers repeated that warning in a unexpectedly known as digital assembly about vitality costs. White Home officers have stated restrictions on vitality exports usually are not being thought-about “right now,” however that they haven’t been dominated out solely.

The teams stated of their letter that current discussions raised “important issues” that the administration could pursue a ban or restrict on gasoline exports.

“Banning or limiting the export of refined merchandise would doubtless lower stock ranges, cut back home refining capability, put upward stress on shopper gasoline costs, and alienate U.S. allies throughout a time of warfare. For these causes, we urge the Biden administration to take this selection off the desk,” the teams stated, referring to Russia’s warfare in Ukraine.

In response to the letter, an Power Division spokesperson stated that vitality corporations have been raking in file excessive income after Russia’s invasion of Ukraine as a substitute of guaranteeing that U.S. customers and allies have a dependable gasoline provide at a good value. The administration is “going to proceed to have a look at all instruments obtainable to guard Individuals and uphold our commitments to our allies,” the spokesperson stated.

America has roughly 18 million barrels per day (bpd) of refining capability and averages about 3.5 million bpd of gasoline exports, with Latin America a significant vacation spot.

Reporting By Jarrett Renshaw; extra reporting by Timothy Gardner in Washington; enhancing by Emelia Sithole-Matarise, Marguerita Choy, Jonathan Oatis and Ana Nicolaci da Costa

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