Rep. Tom Allen Votes to Crack Down on Gasoline Price Gouging

Press Release

Rep. Tom Allen Votes to Crack Down on Gasoline Price Gouging

U.S. Representative Tom Allen, a Member of the House Energy and Commerce Committee, voted today in favor of H.R. 1252, the Energy Price Gouging Prevention Act. This legislation would give the Federal Trade Commission the authority to investigate and punish companies that artificially inflate the price of energy. The legislation passed the House of Representatives today.

"Americans are paying record prices at the pump even as the big oil companies enjoy record profits," said Representative Allen. "This doesn't sit well with me or the many Maine families who have contacted me about the impact on their household budgets. The federal government must have the tools to investigate and prosecute price gouging. Under Democratic leadership, Congress will finally take these overdue steps to crack down on price gouging and restore transparency to energy markets."

Under the bill, the U.S. Department of Justice could impose criminal penalties of up to $150 million on corporations, and fines of up to $2 million and jail sentences of up to 10 years for individuals, if found guilty of price gouging. In addition, the Energy Price Gouging Prevention Act would provide the Federal Trade Commission with the authority to bring greater transparency to oil and gas markets. The bill would direct penalties from price gougers to the Low-Income Home Energy Assistance Program (LIHEAP), which provides thousands of elderly and needy Mainers with winter heating assistance.

Gasoline prices in the U.S. currently average a record $3.22 per gallon, up 89 cents from the beginning of the year. In Maine, gas prices currently average $3.09 per gallon, though prices in parts of Aroostook County already exceed $3.20. At the same time, the six largest oil companies announced profits for the first quarter of 2007 of over $30 billion. In 2006, these companies enjoyed a record $125 billion in profits.

In 2006, Rep. Allen cosponsored legislation similar to H.R. 1252 with colleagues on the Energy and Commerce Committee. Rep. Allen's 2006 package of legislation was designed to lower gasoline prices and to reduce the United States' dependence on imported oil. Unfortunately, Republican leadership killed the legislation, preventing its passage until its reintroduction in the Democratic-controlled Congress this year.

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