Sabrina Valle

HOUSTON, (Reuters) – Europe’s decision to boost renewable fuels as a response to rising fuel prices may have unintended consequences in the short term. It could increase energy consumption and cause an increase in prices. Chevron Corp (NYSE: ) Chief Executive Michael Wirth spoke on Tuesday.

Wirth explained that this could “erode the public support necessary for the transition to energy” There is something a little odd about this, I find.”

The rise in fuel prices has been caused by falling investment in fossil-fuel projects. After sanctions being imposed against Russia this year, oil exporter Russia has seen its prices rise.

In different parts of the globe, gasoline and diesel prices have been a hot topic for election, with U.S. Congressional Elections and a Brazilian presidential run both happening later in this year.

Wirth stated that a prolonged period of diesel from the United States at $6 per gallon, and near $10 per British thermal unit prices could have serious political consequences for policymakers.

Wirth stated, “One thing I am most concerned about is a time of high prices during which voters start to associate with the energy transition ambitions.”

According to the CEO, policy should encourage reductions in carbon emissions and not restrict oil and gas supplies until renewable fuels like wind and solar can take over from fossil fuels. Wirth said that the United States should have a carbon price mechanism similar to Europe’s.

Wirth stated that a carbon price is an easy way to set a price that will create a signal for capital mobilization. We need to establish a commercial model. Policy must enable it.”