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WASHINGTON –Today, as gas prices continued soaring to record levels, the U.S. House of Representatives passed legislation authored by Congressman Bart Stupak (D-MI) to crack down on gas price gouging.
“Today, the House of Representatives sent a clear message that this Congress will stand up for the American consumer who is paying too much at the gas pump, not protect the Big Oil companies’ profits,” Stupak said. “It makes sense that we pass this legislation before the House leaves for the Memorial Day holiday, when millions of Americans will fill up their gas tanks and hit the road.”
Stupak’s bill, the Federal Price Gouging Prevention Act, would provide the Federal Trade Commission (FTC) with a clear, enforceable definition of price gouging. The bill would authorize the Federal Trade Commission (FTC) to investigate and punish those who unreasonably inflate the price of energy, focusing enforcement on the worst offenders, specifically companies with sales of more than half a billion dollars a year.
“The FTC examined gas prices after Hurricane Katrina and found several instances where it appears that consumers had been cheated,” Stupak said. “The FTC found that 23% of refineries, 9% of wholesalers, and, 25% of retailers had increased prices that ‘were not substantially attributable to increased costs’ and ‘could not be attributed to national market trends.’ In short, even when consumers were paying too much, the FTC was powerless to act because there is no law against gas price gouging.”
Stupak continued by noting that rising gas prices damage the American economy.
“Yesterday, before my Subcommittee, the Oversight and Investigations Subcommittee held a hearing on gas prices,” Stupak said. “We learned that for every 10 cents that gas prices go up, $14 billion is transferred from consumers to Big Oil.”
Stupak also noted that while consumers pay record prices at the pump, the oil industry enjoys record profits.
“While consumers pay record gas prices, Big Oil reaps record profits,” Stupak said. “Last year, ExxonMobil profits were 39.6 billion dollars, the largest profit of any company ever. ExxonMobil generated $75,000 a minute, twice the yearly median household income in my congressional district.”
The legislation passed the House under “suspension of the rules,” which requires a two-thirds vote. The measure passed 284 to 141.
Stupak said he would continue working on legislation to lower gas prices at the pump. He noted that he has also introduced the Prevent Unfair Manipulation of Prices (PUMP) Act, legislation that would bring enhanced oversight and transparency to the vast energy futures market.
“I will continue pushing legislation like the PUMP Act, which will also reduce gas prices for consumers,” Stupak said. “I am hopeful we can move this legislation, as well, to remove the ‘fear premium’ from the price of a barrel of oil.”
A recognized leader in the House Democratic Caucus on energy issues, Stupak was selected by the Democratic Leadership last Congress to deliver the Democratic radio response to President Bush on gas prices. Stupak serves on the House Energy and Commerce Committee and chairs that Committee’s Oversight and Investigations Subcommittee. |
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![[News From Congressman Bart Stupak]](stupakpr.gif)
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