Spikes ‘infuriating,’ as gas and oil companies make record profits. House approves legislation to take aim at gasoline 'price gouging'
A closely divided WASHINGTON —
House approved legislation Thursday to crack down on alleged price gouging by oil companies as prices at the pump continue to soar.
A bill backed by House Democrats would give President Joe Biden authority to declare an energy emergency that would make it unlawful to increase gasoline and home energy fuel prices in an “excessive” or exploitative manner. The bill directs the Federal Trade Commission to punish companies that engage in price gouging.
“At a time when people across the country are feeling the pinch at the gas pump, Congress needs to be doing all it can to bring down costs for American families,” said Rep. Kim Schrier, D-Wash., who co-sponsored the bill.
She called it “infuriating” that spikes in gas prices were “happening at the same time that gas and oil companies are making record profits and taking
advantage of international crises to make a profit. This must stop.”
The measure was approved, 217-207. It now goes to the Senate, where a similar bill is pending but faces steep odds amid a 50-50 split between Dem- ocrats and Republicans.
The focus on price goug- ing comes as gas prices hit an average of $4.59 per gal- lon Thursday — 49 cents a gallon higher than a month ago and $1.55 higher than a year ago, according to AAA.
ExxonMobil, Chevron and other major oil companies announced profits totaling more than $40 billion in the first quarter of the year, a fact Democrats repeatedly cited in floor debate. Many of the companies are spending billions on stock buybacks and dividend payments to investors.
“Big Oil is price goug- ing families because they can,” said Rep. Katie Porter, D-Calif., another co-sponsor. “Enough is enough.”
Republicans and indus- try groups called the bill misguided, saying there is no evidence of price goug- ing. Oil is a global commod- ity and prices are set on the global market.
Gas prices rose sharply late last year amid supply chain problems and increased demand as the economy recovered following the COVID-19 pandemic, but prices have spiked fur- ther since Russia’s Feb. 24 invasion of Ukraine. The U.S. has banned imports of Russian oil and other coun- tries are seeking alternatives to Russian energy, driving prices up.
Locally, consumers are feeling the pain at the gas pumps.
Jim Burroughs of Franklin was filling up his Escalade at a Springboro gas station on Thursday and when he was done the price tag was $117.
“They’ve got to do some- thing about these prices. How can it be nearly $2 more from last year? It seems like it’s only going to get worse,” Burroughs said.
Jody Schmidt of Kettering blamed the Biden Administration as she filled up her Toyota.
“Are they seeing what this doing to us? Inflation has hit everything we buy and gas prices are killing us. The day is coming soon where my family will have to make a decision — go on vacation for a week in the summer or stay at home. These gas prices will be the decision maker.”
Jim Glitz of Michigan was driving down Interstate 75 Thursday on his way to Tennessee.
“I don’t believe I’ve ever seen the prices this high,” the 65-year-old said. “It’s getting expensive to travel.”
Biden, aware of the political stakes, has vowed to do all he can to ease “pain at the pump for American families,” including ordering release of record amounts of oil from the nation’s strategic reserve.
Republicans say the answer to higher gas prices is to increase production here in the United States.
Louisiana Rep. Steve Scalise, the No. 2 House Republican, called the bill an attempt by Democrats “to distract and shift blame from the administration’s self-inflicted energy and inflation crisis.’’
Scalise called the bill “a socialist price-fixing scheme that hurts small businesses and consumers the most.” He accused Democrats of “politicizing” the FTC by giving the commission “wide-ranging powers based on undefined parameters that will allow it to usurp market forces and set government-controlled gasoline prices.”
The American Exploration and Production Council, a lobbying group that represents independent oil and gas producers, called allegations of price-gouging false and counter-productive.