WASHINGTON -- With Americans again facing rising gasoline prices, a new Senate bill aims to ban price gouging at the pump and give the U.S. government new authority to go after law-breaking companies, said Reuters.
Under the legislation introduced on Wednesday, the Federal Trade Commission (FTC) could conduct investigations and impose fines on companies suspected of profiteering from gasoline. The specific definition of price gouging would be determined by the FTC through the rule-making process.
There are currently no federal [image-nocss] laws that specifically address price gouging for oil and gasoline; 28 states have laws against gasoline price gouging, but the bill's sponsors argue a federal ban is needed to effectively prevent market manipulation. The billthe Petroleum Consumer Price Gouging Protection Actwould not preempt state laws.
The legislation would also give the president the authority to declare a national energy emergency, subjecting price gougers to new fines and criminal penalties.
Oil companies have repeatedly said gasoline prices reflect supply and demand conditions and have pointed out that prior government gasoline price investigations over the years never found the oil industry at fault.
Energy experts say current high pump prices are due to strong motor fuel demand, falling fuel inventories and many oil refinery outages that have cut into gasoline production.
Similar legislation was introduced in 2005, but fell a few votes short of the 60 needed to block a filibuster of the measure.
The FTC has said its does not need any new authority from the Democratic-controlled Congress to prevent unfair gasoline pricing, but it would nonetheless enforce any related statute passed by Congress.
"Drivers are paying upwards of $50 per tank at the pump in many parts of the country," said Senator Dianne Feinstein (D-Calif.), a sponsor of the bill. "Yet energy companies continue to reap record profits."
"It's hard for families to have confidence that rising prices are fair," said Sen. Maria Cantwell (D-Wash.), another of the bill's sponsors.
"The demand for gasoline is strong and will remain strong for the foreseeable future," said Sen. Joe Biden (D-Del.), another sponsor. "In the past few years there have been great fluctuations in gas prices, placing added burdens on familiesacross the nation. In some cases such as in the aftermath of Hurricane Katrina, the reason for these spikes is obviousbut at other times, price spikes appear for no discernible reason. This bill will give federal and state regulators new authority to crack down on those who artificially manipulate the market. Consumers should be able to fill up their tanks, confident that they aren't being ripped off by big oil companies or even their local stations."
The bill's other sponsors include senators John Kerry (D-Mass.), Bill Nelson (D-Fla.), Ron Wyden (D-Ore.) and Gordon Smith (R-Ore.).
The national price for gasoline on Monday rose 10 cents over the week to an average $2.97 a gallon.
U.S. Energy Secretary Sam Bodman warned on Tuesday that the pump price may reach a new record high this summer, topping the $3.07 a gallon reached in September 2005 after Hurricane Katrina disrupted petroleum supplies along the Gulf Coast.
Some industry analysts expect the cost to reach $4 a gallon by Memorial Day.
The Petroleum Consumer Price Gouging Protection Act now goes to the Senate Commerce Committee for initial consideration.
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