ARLINGTON, Va. -- The Petroleum Marketers Association of America (PMAA) is making a plea to its membership to let Congress know that theythink gouging legislation is a bad idea by sending out of order pump bags to Washington, D.C.
The message that we're trying to drive home: If this were to become law and we had an emergency, thousands of retailers would be forced to just turn off their pumps and bag the nozzles [to avoid being fined]. Is that what you really want? PMAA president Dan Gilligan told CSP Daily News.The U.S. Senate Commerce, Science &[image-nocss] amp; Transportation Committeeon Tuesdayapproved legislation (Senate Bill 1263) introduced by Senator Maria Cantwell (D-Wash.) to make gasoline price gouging a federal crime and put in place new federal protections to guard against market manipulation by oil and gas companies.
Thecommittee's approval of the bill, the Petroleum Consumer Price Gouging Protection Act, marks the first time the panel has passed this legislation and sent it on to the full Senate.
Similarly, the House Bill 1252 is pending with a goal to protect consumers from price-gouging of gasoline and other fuels.
PMAA said both bills will force retailers to turn off pumps during emergencies or shortages if passed. Retailers could be fined up to $500,000 per day for raising prices during these times. Gas lines and panic buying will result, PMAA's note to members warned.
Retailers could be charged with gouging for raising prices any amount above local competitors, the letter, included in a May 10 PMAA newsletter, stated. PMAA has vigorously opposed this legislation, but we need your help to make certain that Congress really understands the market chaos they are about to create.
Noting that Congress has accelerated movement of the legislation, PMAA is urging retailers across the country to send their representative and senators a sample out-of-order nozzle bag along with the message below. This visible symbol may help them understand the gravity of this legislation, the association said.
The message PMAA suggests sending to Congress is:
When faced with an emergency or times of gasoline or diesel shortages, refiners and retailers will be reluctant to sell product for fear of running afoul of federal price gouging laws.The result will be supply shortages and market chaos. Consider the consequences of emergency responders unable to refuel. Instead of protecting consumers, S 1263 and HR 1252 will leave them stranded. When gasoline and diesel retail pumps are bagged, motorists will only have Congress to blame.
Other industry associations, including the National Association of Convenience Stores (NACS) and the National Association of Truck Stop Operators (NATSO), are also urging retailers to make their congressional representatives aware of their stance on the gouging bills. See related story in this issue of CSP Daily News.
To hear Gilligan discuss the gouging bills with CSP's Steve Holtz, click the Download Now button below.
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