Hahn Calls on Federal Trade Commission to Investigate Spike in California Gas Prices

San Pedro, CA – Today, Congresswoman Janice Hahn called on the Federal Trade Commission to protect California consumers from malicious trading schemes that may be responsible for recent record-breaking gas prices. In a letter to the Chairman of the Federal Trade Commission, Jon Leibowitz, Congresswoman Hahn expressed her support for the measures outlined by Senator Dianne Feinstein to strengthen federal oversight of manipulative or deceptive practices in the California gasoline market.

“Californians are, unfortunately, no strangers to manipulated energy prices,” wrote Congresswoman Hahn. “Californians deserve to know whether the record-breaking gas prices they are being made to suffer at the pump are due to market forces or greed.”

The full text of Congresswoman Hahn’s letter to the Federal Trade Commission is copied below:

October 9, 2012

The Honorable Jon Leibowitz

Chairman

Federal Trade Commission

600 Pennsylvania Avenue, NW

Washington, DC 20580

Dear Chairman Leibowitz,

I write in support of Senator Dianne Feinstein’s call for decisive action from the Federal Trade Commission to protect California consumers from malicious trading schemes in the California gasoline market.

The circumstances of the recent spike in gas prices in California raise serious questions. Californians are, unfortunately, no strangers to manipulated energy prices. In this time of economic vulnerability, artificially raised gas prices are intolerable. At some gas stations in the Los Angeles area, the price of gas has reached $5 a gallon. Californians deserve to know whether the record-breaking gas prices they are being made to suffer at the pump are due to market forces or greed.

As such, I request that the Federal Trade commission immediately launch an investigation into price spikes in Southern California, begin collecting relevant data on California’s gasoline markets, and establish a permanent market monitoring team.

Californians pay enough at the pump without any underhandedness driving up the price. They deserve a strong watchdog looking out for them. 

Sincerely,

Janice Hahn

Member of Congress