VT Delegation Asks Bush For Transparency Steps & Actions To Curb Gas Price Gouging
VT Delegation Asks Bush For Transparency Steps & Actions To Curb Gas Price Gouging
Citing murky pricing decisions in oil and gasoline markets, the members of the Vermont Congressional Delegation -- Sen. Patrick Leahy, Sen. Jim Jeffords, and Rep. Bernie Sanders -- Wednesday wrote to President Bush urging several steps by federal agencies to improve the transparency of gas pricing and immediate action to prevent gasoline price gouging. Gasoline prices at the pump in Vermont now are well above the three-dollar-a-gallon level.
The requests are the latest of a series of steps urged by Vermont Delegation members. Leahy and Sanders earlier had urged release of oil from the Strategic Petroleum Reserve -- a step that the Administration finally took last week in the aftermath of Hurricane Katrina. Sanders has urged pressure on Mideast nations to increase production. Leahy and Jeffords last week joined in a letter sent to the White House by 24 senators, urging more funding for LIHEAP -- the federal program that helps low-income citizens with their winter heating costs -- in light of the cost and supply issues shaping up for home heating oil this winter. Sanders also urges more funding for the program. Leahy also hopes to win congressional reconsideration of his "NOPEC" bill, which would apply strong U.S. antitrust laws to OPEC nations engaged in price manipulation and price gouging. The Senate approved the bipartisan NOPEC bill earlier this year as part of the energy bill, but it was dropped in House-Senate conference under pressure from the White House and big oil companies.
In their letter to President Bush on Wednesday, Leahy, Jeffords and Sanders ask the President to direct the Federal Trade Commission (FTC) to require full disclosure of pricing policies by gasoline refiners and wholesalers. They also ask the President to direct the FTC to investigate retail pricing of gasoline to detect any artificial manipulation of prices charged consumers. And they ask the President to direct FTC, the Commodity Futures Trading Commission and the Justice Department to closely monitor gasoline markets for price gouging.
The text of the letter follows:
September 7, 2005
The Honorable George W. Bush
The White House
1600 Pennsylvania Avenue
Washington, DC 20500
Dear Mr. President:
The drastic spike in gasoline prices has caused real concern and hardship across the country. The national average price for a gallon of regular gasoline reached $3.04 this week, up nearly 40 percent from a year ago -- with far higher prices in some communities -- and in many areas artificial price manipulation appears to be occurring. Price gouging cannot be tolerated.
We commend your decision to increase fuel supplies by tapping the Strategic Petroleum Reserve, but for millions of Americans and thousands of Vermonters, more leadership is required. Even before the devastation caused by Hurricane Katrina, escalating gasoline prices needed your immediate attention. Since September 2004 the average price of gasoline has risen $1.20 per gallon. Every penny-per-gallon increase costs consumers $1.5 billion and has an enormous impact on a variety of industries across the United States. Consumers, small businesses and commercial drivers are struggling to keep up with the cost of gasoline and diesel fuel. Last week, citing record-high jet fuel prices, the airlines tacked on a new fuel surcharge to airline tickets in the amount of $10 per ticket. In addition, the Department of Labor reported that wholesale prices increased one percent in July, double the expected increase; over the last twelve months producer prices have risen 4.6 percent, the fastest rate of increase in almost ten years.
More frustrating to consumers is the fact that they face these higher prices at the same time that the nation's largest oil companies and refiners are reporting record profits -- much of it, in the form of windfall profits -- totaling tens of billions of dollars. This past quarter, the following companies reported the following earning increases: Exxon Mobil up 32 percent to $7.64 billion; Shell up 35 percent, to $5.34 billion; BP up 29 percent, to $5.66 billion; Conoco Phillips up 51 percent, to $3.14 billion.
America's fuel crisis continues to take an exorbitant toll on the hard-earned money of families, farmers, and businesses. Immediate Presidential leadership is needed to help solve this problem. We are concerned about the lack of transparency in the oil and gasoline markets. Without a real correction, consumers across the nation will continue to suffer. We therefore respectfully request that you take the following actions:
1) Direct the Federal Trade Commission (FTC), in consultation with the Department of Energy, to issue regulations requiring full disclosure by refiners and distributors of their wholesale motor fuel pricing policies, with a separate listing of each component contributing to prices, including the cost of crude oil, refining, marketing, transportation, equipment, overhead, and profit, along with portions of any rebates, incentives, and market enhancement allowances;
2) Direct the FTC to investigate the retail price of gasoline to determine if that price is being artificially manipulated;
3) Direct the FTC, the Commodity Futures Trading Commission, and the Department of Justice to exercise vigorous oversight over the oil markets to protect the American people from price gouging and unfair practices at the gas pump.
These actions would help ensure the information necessary to determine if there are any illegalities in corporate pricing policies and provide consumers with the information they need to understand why they must pay record prices for gasoline while the industry, across the board, is enjoying record profits.
Thank you for your consideration as we work together in order to address this urgent concern for U.S. gasoline consumers.
Respectfully,
Senator Patrick Leahy
Senator James Jeffords
Representative Bernie Sanders
http://jeffords.senate.gov/~jeffords/press/05/09/090705gasprices.html