Oberstar Fights to End Price-Gouging at the Pump

Oberstar Fights to End Price-Gouging at the Pump
Thursday, September 15, 2005

WASHINGTON--Today, Congressman James L. Oberstar, along with Democratic colleagues in the House of Representatives, unveiled a proposal to end price-gouging by oil companies and provide relief to families in Minnesota and across the nation who are paying record prices at the gas pump.

"Following the devastating impact of Hurricane Katrina, consumers across the country have been forced to pay even more at the gas pump. Even before Katrina, skyrocketing gas prices were putting the squeeze on the pocketbooks of American families. At the same time, oil companies continue to make record profits," said Oberstar. "Skyrocketing oil and gas prices are hurting American consumers, as well as the economy. In Minnesota, a gallon of gas costs, on average, $2.72. The price has increased by 76 cents over the last year, and it has jumped even more since the hurricane."

Nationally, there have been more than 7,000 complaints of price-gouging, and in some parts of the country, gasoline prices exceeded $6 per gallon over the Labor Day weekend. Yet, the Bush Administration is failing to protect American families.

"There have been some egregious reports of profiteering from Hurricane Katrina, and that is simply unacceptable. Democrats are proposing a new federal law to protect consumers from price-gouging by energy companies," said Oberstar. "Not only does this proposal impose tough penalties on companies that cheat consumers, but fines collected for price-gouging would be dedicated to providing relief to consumers for high energy prices. "

House Democrats' new package takes the following actions to bring down gas prices: requires transparency in gas pricing, so that consumers can find out if they are being cheated; applies antitrust laws to OPEC oil producers; calls for an investigation of whether oil companies deliberately reduced refinery capacity to increase profits; and stops tax breaks for oil and gas companies at times of high energy prices. Additionally, Democrats are working to provide relief for consumers hit by skyrocketing heating and gasoline costs. The proposal calls for the creation of a Consumer Relief Trust Fund, which would expand the Low-Income Home Energy Assistance Program (LIHEAP) and provide relief to consumers paying record prices at the pump.

"For many low-income families, disabled individuals, and senior citizens living on fixed incomes, home energy costs are unaffordable. During the upcoming winter, home heating prices will be as much as 71 percent higher in some areas of the country. Residential heating bills for oil are expected to increase by approximately 31 percent, while electricity costs are projected to climb 17 percent. In light of the skyrocketing costs, LIHEAP, which provides a vital safety net for our nation's low-income households, must be fully funded for Fiscal Year 2006," said Oberstar. "These efforts are critical to making energy affordable for American families. At this time of national crisis, we must work together to bring down prices."

http://www.oberstar.house.gov/index.asp?Type=B_PR&SEC={2D7FC21F-FDA5-4FC8-8069-F457DFCB1D85}&DE={2C79391F-6A0D-4915-A907-CE9812AA7768}