Biden tells oil companies in letter 'well above normal' refinery profit margins are 'not acceptable'

President Joe Biden on Wednesday called on U.S. oil refining companies to produce more, saying they need to help alleviate the burden of high prices on consumers. “At a time of war – historically high refinery profit margins being passed directly onto American families are not acceptable,” the president said in a letter to oil companies including $Exxon Mobil(XOM.US)$ and $Chevron(CVX.US)$ . ″Companies must take immediate actions to increase the supply of gasoline, diesel, and other refined product,” the letter added.

The national average for a gallon of gas crossed $5 over the weekend for the first time on record, according to AAA.The national average now stands at $5.014, which is 54 cents more than a month ago, and $1.94 more than last year.

"Since the beginning of the year, refiners' margins for refining gasoline and diesel have tripled, and are currently at their highest levels ever recorded," Biden wrote.“The crunch that families are facing deserves immediate action. Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis,” Biden said.

Oil prices fell after Biden’s letter was released, with West Texas Intermediate, the U.S. benchmark, recently trading down more than 1% at $117.71.

The president’s letter was also addressed to global giants $BP PLC(BP.US)$ and $Shell PLC(SHEL.US)$ , as well as refiners $Marathon Petroleum(MPC.US)$ , $Valero Energy(VLO.US)$ and $Phillips Edison(PECO.US)$ Shares of $Exxon Mobil(XOM.US)$ , $Chevron(CVX.US)$ and the refiners were all down slightly in premarket trading.