BILL AIMS TO CRACK DOWN ON GAS ‘PRICE GOUGING’
House OKs measure directing FTC to monitor fuel markets
A closely divided House approved legislation Thursday to crack down on alleged price gouging by oil companies and other energy producers 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 and adds a new unit at the FTC to monitor fuel markets.
“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, DWash., 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. Republicans unanimously opposed the bill, along with four Democrats.
It now goes to the Senate, where a similar bill faces steep odds amid a 50-50 split between Democrats and Republicans.
The focus on price gouging comes as gas prices hit an average of $4.59 per gallon 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 surging 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 gouging families because they can,” said Rep. Katie Porter, DIrvine, another co-sponsor. “Enough is enough.”
Republicans and industry groups called the bill misguided, saying there is
no evidence of price gouging. Oil is a global commodity and prices are set on the global market.
Gas prices rose late last year amid supply chain problems and increased demand as the economy recovered following the COVID-19 pandemic, but prices have spiked ever higher since Russia’s Feb. 24 invasion of Ukraine. The U.S. has banned imports of Russian oil, and other countries are seeking alternatives to Russian energy, driving prices up.
Biden, aware of the political stakes, has vowed to do all he can to ease “pain at the pump for American families,” including ordering the release of record amounts of oil from the nation’s strategic reserve.
White House press secretary Karine Jean-Pierre said Biden “welcomes all ideas to protect consumers and to make sure that oil companies aren’t taking advantage of (Russian President Vladimir) Putin’s war and are competing fairly.”
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.”
Rep. Chris Pappas, DN.H., said the bill was needed. “The price of crude oil fell last month, yet the prices consumers pay at the pump continued to rise. We have to put an end to this corporate profiteering and give families relief,” he said.
The American Exploration and Production Council, a lobbying group that represents independent oil and gas producers, called the bill counterproductive. “Energy prices are determined by supply and demand, not false accusations of ‘price gouging’ motivated by the upcoming election,” said Anne Bradbury, the group’s CEO.