As Prices at the Pump Reach Record Highs, Congress Approves Measures to Fight Price Gouging, Price Fixing
Washington, DC (May 24, 2007) – As Americans approach Memorial Day and the summer driving season, Rep. Hinojosa joined an overwhelming bipartisan majority in Congress and voted to approve new tools to fight record high gas prices. On Tuesday and Wednesday, Hinojosa voted for legislation to crack down on gas price gouging and OPEC state-controlled entities that conspire to limit the supply or fix the price of oil. ¬¬Hinojosa vote comes as Texan families are paying an average of $3.09 for regular gasoline, which represents a 132 percent spike in cost since 2001.
“Families in Texas are suffering each time they go to the gas station,” said Hinojosa. “This legislation that will help crack down on price gouging and fight against those who attempt to fix the price of oil and stick the American people with the bill.”
On Tuesday, the House approved H.R. 2264 to authorize the Justice Department to take legal action against OPEC state-controlled entities that participate in conspiracies to limit the supply, or fix the price, of oil. Nations or organizations that limit oil supply can artificially inflate the cost of gas and hurt American consumers.
On Wednesday, the House approved The Federal Price Gouging Prevention Act, H.R. 1252, which would give the Federal Trade Commission the authority to investigate and punish companies that artificially inflate the price of gas. The bill sets criminal penalties for price gouging, and permits states to bring lawsuits against wholesalers or retailers who engage in such practices.
While a bipartisan majority in Congress supports these bills, President Bush has threatened to veto both pieces of legislation.
“As the summer driving season approaches, families can barely afford to drive to the local pool, much less go on vacation,” Hinojosa added. “President Bush is wrong to oppose these bills and I urge him to join our efforts to bring down the cost of gasoline.”
Nationwide, families are paying $3.22 a gallon on average for regular gasoline – more than double the cost when Bush took office, up 89 cents from the beginning of the year. Last year, families paid $1,000 more on average for gasoline than in 2001, and each additional 10 cents per gallon of gasoline adds $14 billion to America’s annual gasoline bill.
The high cost for families come as oil companies continue to prosper. The six largest oil companies announced $30 billion in profits for the first quarter of 2007. This is on top of the $125 billion in record profits they made in 2006.
In addition to the legislation approved this week, the Democratic Congress has already voted to roll back $14 billion dollars in taxpayer subsidies for Big Oil companies and reinvest the money in clean, alternative fuels, renewable energy and energy efficiency. Democrats are also developing an Independence Day package to boldly address energy independence and global warming by rapidly expanding the production of clean, alternative fuels and increasing energy efficiency, which will help protect our environment and bring down the cost of fuel for American consumers.