Obama targeting subsidies for oil companies

Obama targeting subsidies for oil companies
# 27 April 2011 01:20 (UTC +04:00)
Baku-APA. US President Barack Obama sent a letter Tuesday to Congress urging lawmakers to eliminate 4 billion dollars in annual subsidies to oil companies so as to reinvest the money in clean sources of energy, APA reports quoting Earth Times.

Obama said there is no need to subsidize oil firms at a time when high fuel prices could endanger the economic recovery, and when oil companies are expected to report massive quarterly profits this week.

"I am writing to urge you to take immediate action to eliminate unwarranted tax breaks for the oil and gas industry, and to use those dollars to invest in clean energy to reduce our dependence on foreign oil," the letter said.

"Our political system has for too long avoided and ignored this important step, and I hope we can come together in a bipartisan manner to get it done."

US petrol prices have hit a two-year high, with a nationwide average of about 4 dollars per gallon (1.05 dollars per litre). Increased costs at the pump could become a liability for Obama as he seeks re-election in 2012.

White House spokesman Jay Carney said Obama’s action on Tuesday was not politically motivated, pointing out that the election is 18 months away.

The Republican Speaker of the House of Representatives John Boehner has expressed an openness to eliminating the subsidies as the federal governments seeks to rein in high deficits.
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