Stabenow: Too Many Excuses' in FTC Price Gouging Investigation
Stabenow: Too Many Excuses' in FTC Price Gouging Investigation
Senator renews call to hold oil companies accountable, enact tough anti-price gouging legislation
U.S. Senator Debbie Stabenow (D-MI) today said the findings of the Federal Trade Commission (FTC) investigation into gas price manipulation were a missed opportunity for the Administration to hold oil companies accountable for price gouging. Today's FTC report was the result of legislation authored by Stabenow and passed as part of last year's energy bill requiring an investigation into gas price manipulation and post-Hurricane Katrina gas price spikes.
"For more than a year, Michigan families, Michigan businesses and Michigan tourism have all been hurt by out-of-control gas prices," Stabenow said. "Unfortunately, this Administration can't bring themselves to call it as the American people see it - the oil companies must be held accountable when they gouge consumers at the gas pump."
Stabenow said today's FTC report seemed to find evidence of price gouging, but did not use their authority to label it as such. For example, while investigating post-hurricane gas prices, the FTC found that even with local and regional market differences taken into account, 8 of the 30 refiners analyzed had raised their prices at least 5 cents above the national average. These firms also reported increased profits, so the higher prices were not needed to recover bottom line costs. Rather than label this practice as price gouging, the FTC allows the refiners' justification that they were responding to "imprecise and changing perceptions of market conditions" to stand.
"It is outrageous that the Administration refuses to hold companies accountable for price gouging, even when their own FTC report admits that's what appears to have happened in some cases. Rather than holding their feet to the fire and demanding these companies explain themselves, the FTC explains it away for them. This report has too many excuses, and the American people are fed up."
"Gas prices in Michigan have already topped $3.00 a gallon this year while the oil companies continue to post record profits. Although parts of the oil industry were damaged by the hurricanes last fall, even companies that don't rely on Gulf Coast refineries raised their prices substantially. If the Administration won't define price gouging, Congress will have to do it for them. "
Last week, Stabenow and Senate Democrats introduced legislation to make gas price gouging a federal crime and to strengthen anti-trust enforcement tools in the oil and gas industry.
"This Administration just doesn't get it. Michigan families deserve a President who will stand up for them by standing up to Big Oil. Our bill will do what it takes to get tough.
http://www.stabenow.senate.gov/press/2006/052206TOoManyExcusesinFTCPriceGougingInvestigation.htm