WASHINGTON – President Barack Obama says oil companies are profiting from rising pump prices and he wants Congress to end $4 billion in annual tax breaks for the oil and gas industry.
“These tax giveaways aren’t right,” Obama said in his weekly radio and Internet address Saturday. “They aren’t smart. And we need to end them.”
Drivers in 22 states are paying more than the national average of $3.91 per gallon. In Alaska, California and Connecticut, it’s $4.20 or more.
The price jump has slowed economic growth and hurt Obama’s public approval ratings.
Exxon Mobil Corp. this week reported nearly $11 billion in profits for the first quarter of this year. Competitors also had huge gains.
Senate Majority Leader Harry Reid, D-Nev., says he plans to consider Obama’s proposal as early as this coming week.
The president said money recouped from ending the oil and gas tax subsidies should go to new energy resources and research.
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