Pelosi, Colleagues Announce Legislation to Prevent Gas Price Gouging

Pelosi, Colleagues Announce Legislation to Prevent Gas Price Gouging

Wednesday, September 21, 2005

Contact: Brendan Daly/Jennifer Crider, 202-226-7616

Washington, D.C. â€" House Democratic Leader Nancy Pelosi joined Representatives James E. Clyburn (D-SC), Bart Stupak (D-MI), Bob Etheridge (D-NC), and Stephanie Herseth (D-SD) at a press stakeout today after the Democratic Caucus meeting to announce the introduction of legislation to crack down on gas price gouging. Below are Pelosi’s remarks:

â€Å"Gas and oil prices are sky rocketing in our country. They are hurting consumers and they are hurting our economy, yet the Bush Administration is doing nothing to help. In fact, the recently signed energy bill, by the Energy Department’s own admission, will increase the price at the pump and does nothing to reduce our dependence on foreign oil.

â€Å"For months now, our Rural Working Group, headed by Congressman Bob Etheridge and Congresswoman Stephanie Herseth, has been talking about what the price at the pump and the cost of home heating oil means to rural America. This is a significant emphasis for our Caucus, and I am proud of their work.

â€Å"Long before Hurricane Katrina hit, they were working on this issue, and in fact, we talked about it with the press. Congressman Bart Stupak has put together legislation that he is going to present to us co-sponsored by our two Rural Working Group Co-Chairs.

â€Å"Last week when we met, we talked about four areas that we thought needed attention in terms of bringing down the cost of the price at the pump as well as home heating oil. One was to empower the FTC to prosecute companies involved in price gouging, and another was to understand how companies, if they did manipulate the price of oil at the pump, how were those refineries run. We also talked about anti-trust considerations in terms of OPEC, and having transparency in pricing, so oil companies disclose publicly how they determine the price.

â€Å"This is of the highest priority to our House Democratic Caucus because it is a high priority for America’s working families. Some people have to work two more hours a day to cover the cost of the gas that takes them to work, if they are making the minimum wage.

â€Å"It is part of the middle-class squeeze that is hurting America, and that was all before Katrina. A level of uncertainty has been injected into this, and Democrats stand ready to do something about it. The first step that we will take is to support the legislation introduced by Mr. Stupak, Mr. Etheridge, and Ms. Herseth.”

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Bring Down High Gas/Energy Prices

Skyrocketing oil and gas prices are hurting the American consumers, as well as our economy, and yet the Bush Administration has failed to act aggressively to bring down gas prices. Democrats are fighting to provide relief to the consumers, farmers and small businesses that are suffering at the hands of oil companies that continue to make record profits. Democrats are fighting for a federal law to ensure that consumers are not the victims of price gouging when they fill up their tanks or heat their homes.

Congressman Bart Stupak and members of the Democratic Rural Working Group will introduce a bill that will do the following:

Lower Energy Prices by Ending Price Gouging by Oil Companies

Empower the federal government to end price gouging by oil companies.

• Give the Federal Trade Commission (FTC) and the Department of Justice (DOJ) authority to prosecute oil companies engaged in price gouging involving gasoline, home heating oil, or natural gas.
• Empower the federal government to impose tough civil penalties â€" of up to triple damages of all excess profits -- on companies that have cheated consumers. Imposes tough criminal penalties of up to $100 million on corporations, and fines of up to $1 million and jail sentences of up to 10 years for individuals.
• Bans other manipulative pricing practices by oil companies on the wholesale petroleum market.

Transparency in gas pricing.

• Ensure price transparency in the wholesale markets for crude oil and petroleum products.
• Transparency would give consumers the necessary information to understand if they are being gouged.

Bring Relief from High Energy Prices to Consumers, Farmers, and Small Businesses

• y deterring price-gouging, this measure would provide relief to consumers paying record prices at the pump.
• Provide relief to farmers and small business paying skyrocketing energy and transportation costs and expand the Low-Income Home Energy Assistance Program (LIHEAP) through fines from price-gouging companies.