America’s oil refiners are enjoying a surge in profits as inventories of critical fuels are drained across the US, sending prices sharply higher just weeks before the start of the country’s annual driving season.
The sharp rise in the cost of fuel at the pump in recent months has prompted a backlash from the Biden administration, which has warned oil companies against profiteering amid the war in Ukraine and spiralling inflation. Some in Washington have looked to levy windfall taxes on the industry.
But worsening shortfalls of diesel, petrol and jet fuel across the country point to a refining system stretched to its limits by a robust post-pandemic recovery in fuel demand, the loss of Russian supplies after its invasion of Ukraine and refineries running at full tilt.