Timothy Gardner and Liz Hampton

WASHINGTON, (Reuters) – U.S. Oil executives will testify before Congress Wednesday that they have increased energy production and that no single company determines the gasoline price. This is in defense of allegations by Congress of goinguge with high fuel prices.

The hearing is scheduled for 10:30 ET (14.30 GMT) and will be held by the U.S. House Energy and Commerce Subcommittee of Oversight and Investigations. It will allow companies to answer questions about why prices for gasoline remain high despite falling prices for ethanol, which provides fuel for the engines.

U.S. gasoline prices rose due to Russia’s invasion in Ukraine and Western sanctions against Moscow’s exports of energy. They hit an all-time high of $4.33 per gallon on March 11, before inflation adjustments. On Wednesday they dropped to $4.17 per gallon, which is a drop of around 4%, AAA motorist group reported.

The international crude oil prices have fallen more dramatically than expected, falling from an all-time high of $139 per barrel early March to $107 by Tuesday. This is a 23% drop.

Diana DeGette, a Democrat who chairs the subcommittee said that the hearing was not going to let the fossil fuel sector take advantage American consumers and make them pay at the pumps. Exxon Mobil (NYSE:), Chevron (NYSE :), BP America (NYSE :), Shell America LON : USA Devon Energy Pioneer (NYSE: Corp) will also testify.

She said, “We need to understand what’s driving these record-high oil prices” and that it was important to take immediate action to lower them. Many Democrats complain that oil companies are making record profits and consumers pay high prices.

The oil companies will say https://energycommerce.house.gov/committee-activity/hearings/hearing-on-gouged-at-the-gas-station-big-oil-and-americas-pain-at-the that labor and supply shortages are preventing a quick return of oil output to pre-pandemic levels, and that prices are determined in the international market.

Mike Wirth, Chevron’s Chief Executive Officer will state that the market forces that determine fuel prices have very little influence over companies.

Wirth said that price fluctuations do not always lead to changes at the pump. While crude oil prices may drop more rapidly, there is often more time for retail competition to drive down the pumps’ price.

As a result of a record-breaking oil release from strategic reserves, President Joe Biden (a Democrat) urged American oil companies to increase output and serve American families, rather than investors.

Chevron will increase capital spending by half this year, with half the money going towards increasing oil and natural gas production and half to lower-carbon fuels. Wirth will speak about previously announced goals.

Exxon (the top U.S. oil firm) said on Monday that it could surpass the seven-year-old quarterly record for its first quarter. This preview gave a glimpse of the future for oil earnings from other companies after Russia invaded.

According to testimony, Darren Woods (chairman and chief executive at Exxon) will state that “no single company sets oil prices or gasoline.” According to the testimony, “The price is determined by the market based on the available supply and the demand.”

Shell USA president Gretchen Watkins says that Shell USA does not control or own the 13,000 Shell USA gas stations. “Each independent business is responsible for setting local gasoline prices.”

Scott Sheffield is the Chief Executive of Pioneer. Pioneer was the largest producer in Permian Basin. He stated that oil companies can’t quickly turn on the water taps due to worker shortages and decommissioning many of the rigs and hydraulic-fracturing fleets in low prices in 2020.