Lautenberg and Menendez: President Bush Must Take Action Against Rising Gas Prices

Lautenberg and Menendez: President Bush Must Take Action Against Rising Gas Prices

FORT LEE, N.J. -- During a news conference today at a gas station in Fort Lee, United States Senators Frank R. Lautenberg (D-NJ) and Robert Menendez (D-NJ) laid out steps President Bush can take to lower gas prices for New Jersey drivers. The two lawmakers were joined by Fort Lee Mayor Jack Alter and Bergen County Executive Dennis McNerney.

In a letter sent today, Senators Lautenberg and Menendez accused the President of ignoring the dramatic rise in gas prices and its impact on families in New Jersey and across the country. "Under your leadership, a gallon of gasoline has risen from $1.16 per gallon to $2.73 since the end of 2001. This enormous price increase is hitting millions of American families and businesses very hard," wrote the lawmakers.

Lautenberg and Menendez called on the President to address the issue of skyrocketing gas prices by taking a series of steps at his disposal. First, take action against OPEC. This year, President Bush refused to make reform of OPEC a condition of Saudi Arabia's accession to the World Trade Organization (WTO) despite the OPEC cartel violating WTO's prohibition on export quotas. Lautenberg and Menendez urged the President to file an official complaint with the WTO against OPEC's illegal actions.

Last year, Senator Lautenberg introduced the OPEC Accountability Act (S.752), which requires the President to initiate consultations with OPEC nations that are also members of WTO to seek their elimination of any action that limits the production or distribution of oil, natural gas, or any other petroleum products. If the consultations fail, the legislation requires the U.S. Trade Representative to initiate World Trade Organization (WTO) dispute proceedings.

The Federal Trade Commission (FTC) is currently conducting an investigation into possible price gouging by big oil companies. If the FTC concludes there were potentially unfair business practices, including price gouging, there are actions that can and must be taken. The lawmakers urged President Bush to call on the Federal Trade Commission (FTC) to use its authority to hold the big oil companies accountable for their actions against American consumers.

"Mr. President, in your State of the Union address you said keeping America competitive requires affordable energy. As the big oil companies are posting record profits, many families in New Jersey are finding it difficult to balance the costs of filling their tanks with other critical needs of their families. We urge you to address the growing crisis before the summer travel season begins," wrote the lawmakers.

Lautenberg Report on OPEC http://www.lautenberg.senate.gov/documents/foreign/OPEC%20Memo.pdf

April 17, 2006

Dear President Bush:

Under your leadership, a gallon of gasoline has risen from $1.16 per gallon to $2.73 since the end of 2001. This enormous price increase is hitting millions of American families and businesses very hard. We hope you will take the much-needed steps outlined below to reduce, or at least, contain, the price of gasoline.

We urge you to take immediate action against OPEC by instructing the United States Trade Representative to file a complaint with the World Trade Organization (WTO) against OPEC-member nations for violating WTO's prohibition on export quotas. OPEC operates as a cartel, which drives up the price of oil worldwide. This year, you inexplicably refused to make reform of OPEC a condition of Saudi Arabia's accession to the World Trade Organization (WTO), despite the OPEC cartel's harmful impact on the U.S. market. You should also know that there is legislation pending in the Senate, the OPEC Accountability Act (S.752), introduced by Senator Lautenberg, which also requires the President to authorize the U.S. Trade Representative to initiate World Trade Organization (WTO) dispute proceedings and take appropriate action regarding the violating country under U.S. trade remedy laws.

Additionally, the Federal Trade Commission's (FTC) report on possible price gouging by the big oil companies in the United States is due later this year. If the FTC concludes there were potentially unfair business practices including price gouging, we urge you to call on the FTC to use its authority to hold the big oil companies accountable for their actions against American consumers.

Mr. President, in your State of the Union address you said keeping America competitive requires affordable energy. As the big oil companies are posting record profits, many families in New Jersey are finding it difficult to balance the costs of filling their tanks with other critical needs of their families. We urge you to address the growing crisis before the summer travel season begins.

Sincerely,

Frank R. Lautenberg Robert Menendez

http://lautenberg.senate.gov/~lautenberg/press/2003/01/2006417443.html