Reed Calls on Justice Department to Investigated Gas Price Gouging

Press Release

Reed Calls on Justice Department to Investigated Gas Price Gouging

Stating that, "[t]he Administration must take action to ensure that Americans are protected from unprincipled practices," U.S. Senator Jack Reed (D-RI) has sent a letter to U.S. Attorney General Alberto Gonzales and the U.S. Attorney for the District of Rhode Island, Robert Clark Corrente, to request that they establish a task force to investigate possible "price gouging" and unfair practices by gas station and distributors.

The U.S. Energy Department has reported receiving more than 5,000 calls to its price gouging hot line in a single day.

The letter states, "Gasoline prices rose as much as 60 cents yesterday in Rhode Island. Some stations were selling gas for as much as $3.32 cents a gallon. Limited supplies of gasoline are raising concerns with many Rhode Islanders that they may face price gouging."

Reed stated, "We must stop dishonest people from taking advantage of current events to rob consumers at the gas pump."

Following is the text of the letter:

Hurricane Katrina upset the lives of millions, displacing families from their homes and inflicting severe economic damage in the Gulf region. The effects of Hurricane Katrina are being felt by Americans outside of the Gulf Region as gasoline, heating oil, and natural gas prices rise in the wake of this disaster. Gasoline prices rose as much as 60 cents yesterday in Rhode Island. Some stations were selling gas for as much as $3.32 cents a gallon. Limited supplies of gasoline are raising concerns with many Rhode Islanders that they may face price gouging.

Hurricane Katrina damaged platforms and ports and curtailed production at refineries in the Gulf of Mexico, the source of almost a third of U.S. oil output. The severe damage to our nation's energy infrastructure is undoubtedly raising energy costs; however, we need to ensure that Americans are protected from businesses that may chose to take advantage of this tragedy. I urge you to immediately establish a task force within the Department of Justice to work with states to monitor gasoline prices across the nation and determine if increases in gasoline prices that are affecting consumers and businesses are due to the hurricane and not anti-consumer practices. I also urge you to closely monitor the market and oil companies to ensure there is no collusive activity in violation of anti-trust laws.

Gasoline futures rose more the 9 percent after Hurricane Katrina. This week's increases come atop of a 40 percent price rise in the last year. Unfortunately, the Administration's failure to promote meaningful energy policy to reduce our dependency on oil is at the heart of this economic hardship on American families. The Administration must take action to ensure that Americans are protected from unprincipled practices that may take advantage of the disaster created by Hurricane Katrina.

Source