President Biden suggested in a speech Wednesday that “the companies running gas stations” are gouging drivers at the pump. But most gas stations are mom-and-pop businesses, and their profits are down, data showed.
Is there anyone Biden won’t try to blame for out-of-control inflation?
WHAT HE SAID
“To the companies running gas stations and setting those prices at the pump … bring down the price you are charging at the pump to reflect the cost you are paying for the product,” he said.
- Biden also called on Congress to enact a three-month federal gas tax holiday to “provide families some immediate relief” from record-high gas prices.
- “Just a little bit of breathing room as we continue working to bring down prices for the long haul,” he said.
WHAT THE FACTS SAY
According to the National Association of Convenience Stores, more than 60% of U.S. service stations are owned by an individual or family that owns a single store.
- Major oil companies’ share of the shrinking market is less than 5%.
A study by Barron’s published earlier this month found gas stations’ gross profits fell to 25 cents per gallon in May, one of the lowest levels in years.
- Gas stations are a “silly thing to go after,” Tom Kloza, global head of energy analysis at the Oil Price Information Service, told Barron’s.
- “It’s like saying we’re going to inspect all the plugs because there are electrical problems on the grid.”