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| August 29, 2003 | |||
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LIEBERMAN SEEKS INQUIRY INTO GAS PRICE SPIKES AS PRICES HIT THE HIGHEST LEVELS EVER RECORDED
Warns against price gouging and profiteering |
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WASHINGTON - Governmental Affairs Committee Ranking Member Joe Lieberman, D-Conn., Friday pressed Energy Secretary Spencer Abraham to conduct a review of recent gas price hikes, as prices in the U.S. this month reached the highest level ever recorded by the Energy Information Administration’s (EIA’s) retail price survey.
In a letter to Secretary Abraham, Lieberman called for an immediate investigation by the Department of Energy into the causes for this price spike and its impact on consumers. “In my own state of Connecticut, statewide prices jumped 10 cents in a single day,” said Lieberman. “It is imperative that this investigation determine both the underlying causes for these price increases, and whether or not industry participants are gouging consumers, especially those in regions that have been affected by pipeline problems and power blackouts.” While Lieberman acknowledged that gas prices in some regions may have been disrupted by the pipeline rupture in Arizona and the electricity blackout in the Northeast , he pointed out that price spikes were not contained to the affected regions. He cited EIA reports that every region of the country, and virtually every state, has experienced a rapid increase in gasoline prices. He also said he was troubled that this spike comes at the end of the summer driving season and mirrors a similar price increase that occurred at the end of last summer. Below is a copy of the letter: August 29, 2003 The Honorable Spencer Abraham Secretary U.S. Department of Energy 1000 Independence Avenue, SW Washington, D.C. 20585 Dear Mr. Secretary, Gasoline prices in the United States have just reached the highest level ever recorded by the Energy Information Administration’s (EIA) retail price survey, after experiencing the largest weekly price increase ever. I am writing to request that you immediately initiate an investigation into the causes for this price spike and its impact on consumers. While it appears that gasoline supplies in some regions of the country may have been disrupted by physical events – a pipeline rupture in Arizona and the electricity blackout in the Northeast which affected refineries in the Ohio and Michigan – these are not the only affected regions. EIA reports that every region of the country, and virtually every state, has experienced a rapid increase in gasoline prices. In my own state of Connecticut, statewide prices jumped 10 cents in a single day. It is also troubling that this spike comes at the end of the summer driving season and mirrors a similar price increase that occurred at the end of last summer. It is imperative that this investigation determine both the underlying causes for these price increases, and whether or not industry participants are gouging consumers, especially those in regions that have been affected by pipeline problems and power blackouts. For example, EIA reports that one gas station in Arizona may have been charging as much as $3.89 a gallon for gasoline. While it’s clear that these sorts of disruptions will have some effect on the market, they should not be, and must not be, opportunities for price gouging and profiteering. I look forward to your prompt reply. Sincerely, Joseph I. Lieberman Ranking Member |
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