Pritzker asks oil CEOs to return Iran war windfall profits to Illinois consumers: 'You owe it to the people

Illinois Gov. JB Pritzker on Wednesday penned letters to the U.S. CEOs of seven major oil companies, accusing them of "profiteering" from the war in Iran and imploring them to return windfall profits to Illinois consumers, among other demands.

It's a rare agreement between the Democratic governor and President Donald Trump, who on Monday railed against Chevron and Exxon Mobil for high profits amid the Iran war and said they should "give some of that back to the public."

"Under the guise of supply disruptions from war in the Middle East, your companies are collecting windfall profits from the hardworking families and businesses in Illinois," Pritzker writes in the letter to the CEOs of Shell, Exxon Mobil Corp., Chevron Corp., Continental Resources Inc., bp America, ConocoPhillips and Occidental Petroleum Corp. "That’s the very definition of profiteering, and you owe it to the people of my state and the nation to disgorge those excess profits and provide meaningful price relief to consumers."

American oil and gas companies are taking in massive profits while fighting between the U.S. and Iran hinders petroleum shipments. That has led to consumers worldwide paying more for fuel. The conflict has halted most shipping through of Strait of Hormuz, which serves as a delivery route for a large portion of the world's oil and natural gas supply. Trump has criticized oil companies' stark profits, writing in June on social media that he wanted the Justice Department to investigate whether "customers are being 'gouged.'" Trump reiterated that claim in the Oval Office on Monday, saying he's not happy with the profits reported by Chevron and Exxon Mobil, even though the higher margins reflected energy prices that increased after Trump launched the war, the Associated Press reported.

“They made too much money, too much money, “ Trump said. “They ought to give some of that back to the public, and they better cut the retail price.”

Oil companies don't set the price at the pump, but gas station operators have to raise prices when the cost of oil surges, as it has during the Iran war.

Pritzker's letter to the CEOs says their businesses are profiting "while families across my state and the nation face sharply higher prices at the pump." Since the war began, the price of regular gasoline in Illinois has risen by more than $1.30 per gallon, averaging $4.34 per gallon statewide and costing residents an additional $2 billion so far, the governor wrote.

The governor wants CEOs to state whether their company is preparing to return any portion of profits to Illinois consumers via price reductions, direct refunds or other means. He also asks them to provide refining margins and wholesale pricing decisions, as well as detailed information about their refinery and operational decisions that affected the volume of gasoline and diesel fuel available to consumers. Pritzker also is seeking information about executive compensation.

"Illinoisans have a right to know how your companies are profiting from this conflict, how much of those outsized profits Illinois families are being made to pay, and what steps you will now take to provide them with relief at the pump," Pritzker writes.

The governor is asking for a response from the CEOs by August 21.

Indexed and credited by AIPROPX. Originating outlet: Chicago Sun-Times. Open at source →