Gregg Calls for Investigation into Potential Gas Price Gouging

GREGG CALLS FOR INVESTIGATION INTO POTENTIAL GAS PRICE GOUGING

U.S. Senator Judd Gregg (R-NH), Chairman of the Senate Appropriations Subcommittee on Homeland Security, today sent a request to the head of the Federal Trade Commission calling for an investigation into whether gasoline producers, wholesalers, or retailers have engaged in price gouging or other market manipulation in the wake of Hurricane Katrina's devastation in the Gulf Coast region.

In a letter to the Chairman of the Federal Trade Commission, Senator Gregg stated, "As you know, Hurricane Katrina has had a major impact on our nation's gasoline markets, disrupting oil production, gasoline pipelines, and refineries in the Gulf Coast region. I recognize that this unprecedented natural disaster came on the heels of an already steady climb in gasoline prices due to increasing global demand, restricted refinery capacity, and other factors. However, reports of nearly immediate, massive increases in gasoline retail prices in the days following Katrina, including in markets that are less reliant on the Gulf Coast region for gasoline supplies, are troubling. As many oil companies have reported record profits, as consumers have seen their gas prices nearly double, there is growing concern inflated prices are translating to inflated profits. These price increases not only have hurt constituents in my state who need their motor vehicles to go to work and carry out daily activities, but they also have caused increased hardship for gasoline consumers in other parts of the country, especially those in the Gulf Coast region who already are struggling to recover from Katrina's devastation.

"I realize that the prosecution of price gouging is generally left to the States unless it involves some form of collusion or other acts prohibited by federal antitrust laws. Nevertheless, under the Energy Policy Act of 2005, Congress already has given the FTC the responsibility to review pricing practices in the gasoline market. Moreover, the FTC has both the expertise and the resources to carry out such an investigation and provide a comprehensive nationwide review for Congress. As such, I request that the FTC examine whether gasoline producers, wholesalers, or retailers are engaged in any price gouging or other market manipulation in the wake of Hurricane Katrina's landfall. I also would urge that this investigation be carried out in a timely manner so that Congress can have the information needed in an expeditious manner."

http://gregg.senate.gov/press/2005/0913_gas_price_gouging.htm