Oil industry hits back at Biden over comments on hurricane price gouging

The American Petroleum Institute (API), the top fossil fuel industry group in the U.S., responded to President Biden on Wednesday, saying allegations that oil companies would price gouge during the hurricane in Florida were "false."

API stated that gasoline prices are determined by the market and that its member companies are focused on shoring up supplies amid the massive storm barreling into Florida. Hurricane Ian made landfall Wednesday afternoon as a Category 4 storm, causing more than a million residents to lose power and prompting stark safety warnings from Florida officials.

"In an unfolding weather event, our industry is focused on keeping the energy market well-supplied and delivering fuels where they are needed most while ensuring the safety of our workforce," an API spokesperson told Fox News Digital in a statement.

"Gasoline prices are determined by market forces — not individual companies — and claims that the price at the pump is anything but a function of supply and demand are false," the spokesperson added.

BIDEN WARNS OIL COMPANIES NOT TO RAISE GAS PRICES IN WAKE OF HURRICANE IAN

Earlier in the day, Biden warned oil companies against hiking gasoline prices during the expected demand surge during the hurricane. He added that his administration was prepared to investigate any increase in prices at the pump impacting those in the storm's path.

"Do not — let me repeat, do not — do not use this as an excuse to raise gasoline prices or gouge the American people," Biden said. "My experts informed me the production of only about 190,000 barrels a day have been impacted by the storm thus far. That's less than two percent of the United States' daily production impacted for a very short period of time."

"This small, temporary storm impact on oil production provides no excuse — no excuse — for price increases at the pump. None. If companies try to use this storm to raise prices at the pump, I will ask officials to look into whether price gouging is going on."

HURRICANE IAN POWER OUTAGES IN FLORIDA SURGE

Biden's comments reflected statements he and other administration officials have repeatedly made over the last several months regarding high gasoline prices. As prices surged to record highs in May and June, Biden and several Democratic lawmakers blamed oil companies for taking advantage of the crisis.

American Fuel and Petrochemical Manufacturers (AFPM), a leading group representing U.S. petroleum-refining companies, also pushed back against Biden's comments Wednesday, echoing API.

"Our country has seen time and again that major storms and often-correlated runs on gas stations can have a swift impact on prices," the group said in a statement. "Already in Florida, some key areas are functioning with roughly 20 percent of retail stations either out of gas or out of power."

"That means there is less supply overall and some temporary inability to access supplies in certain Florida communities where there is, at present, heightened local demand," AFPM continued. "The market is resilient and will work to fix this imbalance swiftly, but a return to normalcy will likely not be immediate as the supply chain is complex and buyers will need to return to their normal purchasing habits."

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The organization added that price gouging is illegal under Florida statute and that the state has a system for investigating alleged violations of the law.

Last year, Biden ordered the Federal Trade Commission (FTC) to investigate whether oil companies were price gouging amid a surge in gasoline prices. The agency has yet to conclude the probe.

Previous reports and investigations by the FTC and Federal Reserve have shown that past rises in gas prices weren't a result of price gouging.