DeLauro, Over 80 House Members Urge President to Meet with Oil Companies
FOR IMMEDIATE RELEASE
Friday, September 9, 2005
DeLauro, Over 80 House Members Urge President to Meet with Oil Companies
WASHINGTON, D.C. - In a letter to President Bush today, Congresswoman Rosa L. DeLauro (Conn.-3) and more than 80 House members urged him to meet as soon as possible with executives of the nation's major oil companies to learn what they are doing to reduce the cost of gasoline. According to the American Automobile Association, gas prices remain at $3.02 per gallon on average.
"We believe the Federal government must increase its oversight capacity and bring all its resources to bear on excessive profit-taking in the oil industry," wrote the lawmakers. "Such a strategy has met with success in the past; in July 2000, then-Energy Secretary Richardson met with oil industry executives with gasoline prices averaging $1.664 per gallon. Within two weeks after the meeting, the price declined six cents and within a month, another eight cents."
"American consumers cannot sustain these record-high gas prices, which is why we must be doing everything possible to lower to cost of gasoline," said DeLauro. "Holding the nation's oil companies accountable is just one step toward lowering prices at the pump. The president has the ability to call these companies in and should do so."
The full text of the letter follows.
September 9, 2005
The President
The White House
Washington, D.C. 20500
Dear Mr. President:
We write to request that you meet as soon as possible with executives of the nation's major oil companies to learn what they are doing to reduce the cost of gasoline.
As you know, the cost of gasoline is unsustainable. According to the American Automobile Association, the gas prices remain at $3.04 per gallon on average - a "consumption tax" on American businesses and individuals which is already harming the nation's economy. In some pockets of the country, gasoline prices exceeded $6 per gallon on Labor Day weekend. With the summer driving season concluded and most refineries closed during Hurricane Katrina now having restarted operations, we are concerned that some of the current high costs of gasoline may be attributable to excessive profit-taking at the wholesale level. In order to help ensure that gasoline prices reflect the falling price of oil and increase in refinery production, we believe that meeting with oil company executives would be prudent, reminding them that the Federal Trade Commission Act forbids unfair trading practices in the interstate trade of gasoline.
We understand that you favor allowing market forces to correct the situation. But given the circumstances, we believe the Federal government must increase its oversight capacity and bring all its resources to bear on excessive profit-taking in the oil industry. Such a strategy has met with success in the past; in July 2000, then-Energy Secretary Richardson met with oil industry executives with gasoline prices averaging $1.664 per gallon. Within two weeks after the meeting, the price declined six cents and within a month, another eight cents.
At present, the Congress has issued bipartisan warnings to oil companies about price gouging. Republican Senate Energy Committee Chairman Domenici pledged to hold hearings if price gouging is suspected, while many members of the Democratic caucus have introduced legislation making price gouging a federal crime. We believe it is vital for the executive branch to instate a similar "zero tolerance" policy for oil companies that engage in price gouging.
At this time of national crisis, the American people expect not only responsiveness from their government but action. Calling the oil industry to account is one affirmative step your administration could take to begin to restore public confidence in your ability to handle the aftermath of Hurricane Katrina.
We look forward to your prompt action.
Sincerely,
http://www.house.gov/delauro/press/2005/September/president_oil_09_09_05.html