Rep. Andrews Calls for Investigation into Gasoline Price Hikes

Statement

REP. ANDREWS CALLS FOR INVESTIGATION INTO GASOLINE PRICE HIKES

Gasoline prices following Hurricanes Katrina and Rita have soared leaving families and businesses across the United States reeling from the sudden increased financial burden. Our region, which typically has one of the lowest average gasoline prices in the Nation, recently saw the price at the pump outstrip neighboring States. While the natural disasters on the Gulf Coast surely impacted gasoline supply, such dramatic price increases suggests price gouging.

I have joined with Congressman Maurice Hinchey to request that the Department of Justice and the Federal Trade Commission (FTC) investigate possible industry collusion and price fixing under the Federal Trade Commission Act which outlaws unfair or deceptive practices in interstate commerce. Price gouging is a despicable act which takes advantage of a tragedy for personal, corporate, or industry gain. We must thoroughly investigate potential bad actors and prosecute those who profiteer on the backs of American families. I am pleased to advise that in response to the Congressional Coalition's request, the FTC has agreed to investigate whether oil companies manipulated the gasoline market following Hurricane Katrina.

In addition to stopping price gouging, it is also imperative that we address the fundamental supply and demand issues which have caused a steady increase in gasoline prices in years prior to the Gulf Coast disaster. Increased world demand for crude oil and inadequate U.S. refinery capacity leaves us vulnerable to sudden disruptions in supply. The continued violence in Iraq and the ever-present risk of terrorism in other oil-producing nations threatens to push gasoline prices up further. Hurricanes Katrina and Rita only exacerbated an existing problem by shutting down refineries and further straining our limited supply.

We must put pressure on the Organization of Petroleum Exporting Countries (OPEC) to increase oil production. I have not seen any efforts by the Administration to this end. Foremost, we must focus on reducing U.S. demand for oil. I have long supported efforts to change the Corporate Average Fuel Economy (CAFE) law, which tightens regulations on fuel consumption standards for passenger cars. New alternative energy and energy efficiency technologies must be fostered and rapidly introduced into the market.

Affordable and effective transportation is vital to the American economy and the American family. I will continue my efforts to protect our citizens from artificial price hikes and will further pursue policies which fundamentally address skyrocketing gasoline prices by reducing oil demand.

Source