WASHINGTON -- A Connecticut congressional delegation said Monday that the Government Accountability Office (GAO), at the delegation's request, will review the oil and gas refining industry actions to determine whether market and supply manipulation has occurred, as well as to what extent their practices influence fuel prices.
In response, the National Petrochemical & Refiners Association (NPRA) said that it has taken issue with the delegations request to review refining practices under the premise that they increase gasoline prices.
In a letter dated May 18, 2007, the bipartisan group asked the GAO to investigate the role that refineries play in determining or influencing prices of fuel due to anticipated or unintended outages and how they might profit from those shutdowns considering the basic law of supply and demand.
In his response dated August 23, the GAO's comptroller general accepted the members' request and will order an official GAO study to begin in October.
Click here to view the Connecticut delegations letter to the GAO.
Click here to view the GAO's response.
We're disappointed to see that the Connecticut delegation completely missed the target in its request of GAO, NPRA executive vice president Charles T. Drevna said. Domestic refiners are some of the most highly regulated businesses in the country. Report after report has proven that price manipulation does not occur. Economists and national editorial pages have even warned Congress against passing so-called 'price gouging' legislation. The American public could be far better served if its elected officials would work with businesses instead of against them to craft a sensible and realistic energy policy to protect consumers by keeping supplies stable.
He added, Punishing American companies will not solve the nation's need for more fuels, but rejecting emotional pleas to institute 1970s-style price controls and expanding the safe, clean use of our domestic resources will. We hope GAO looks into the real contributors to higher gas prices such as regressive energy policies that discourage the construction of new refineries and expanded domestic exploration and production.
Click the Download Now button below to view comments from the congressional delegation about the need for the GAO investigation, as well as documentation supplied by the NPRA showing that an investigation is not necessary.
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