A Flag in Support of Ukraine Flies on Munjoy Hill

Congresswoman Chellie Pingree (D) announced today that she has cosponsored legislation to curb profiteering by Big Oil companies and provide American consumers relief at the pump.  The Stop the Gas Price Gouging Tax and Rebate Act, introduced in the US House by Congressman Peter DeFaxzio (D-Oregon), would create a windfall profit tax on excessive corporate profits and return the revenue to American consumers in the form of a tax rebate.

The price of a gallon of gasoline is up well over a dollar from a year ago and the price of a barrel of oil has also significantly increased compared to what it was before the pandemic.  Russia’s invasion of Ukraine has further disrupted an already volatile global oil market by reducing supply and leading governments to limit imports of Russian energy to cut Russia off from its main source of cashflow that is fueling Putin’s war and help protect the Ukranian people.

At the same time, Big Oil companies are reaping near record profits.  In 2021, the largest oil and gas companies made a combined $205 billion in record profits, according to a report released last week by Accountable US.  Exxon Mobil, the largest oil and gas company in the US, reported over $23 billion in profit in 2021 alone, which was a 60% increase compared to its 2019 profit of $14 billion.  Over that same time period, the price of a gallon of gasoline rose from an average of $2.60 to $3.41.  It currently stands at over $4.00.

Big Oil has used its excess billions in profit to shower CEOs and shareholders with cash, instead of providing lower gas prices to Americans.  As a result, Americans are continuing to face record-level prices at the gas pump.

The report asserts that BIg Oil is taking advantage of bloated prices, fleecing Americans along the way.  According to a report from Bernstein Research, the seven major companies in the US are on track to return at least $38 billion to shareholders via stock buy back programs this year.  Big Oil is poised to continue exploiting this moment to maximize their profit in 2022.

“Right now gas is more than $4.00 a gallon in Maine and across the country.  People are angry and frustrated and they should be,” said Pingree. “While Russia’s war has undoubtedly played a part in skyrocketing prices, gas prices were on the rise long before Putin’s aggression in Europe because of the Big Oil’s greed.  As Americans struggled to pay for groceries and rent last year during the pandemic, the largest oil companies in the US made record profits.  Once again, Big Oil is profiting off a global crisis, using it as an excuse for raising prices.  Enough is enough.  More drilling isn’t the solution.  Curbing corporate greed is.”