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Durbin, Deomcrats Push for Action to Protect Consumers From Price Gouging at the Gas Pump

Date: Sept. 14, 2005
Location: Washington, DC
Issues: Oil and Gas


DURBIN, DEMOCRATS PUSH FOR ACTION TO PROTECT CONSUMERS FROM PRICE GOUGING AT THE GAS PUMP

With oil company profits at an all-time high and Illinois families paying more than $3.00 for a gallon of gas, U.S. Senator Dick Durbin (D-IL) today called for greater authority for the Federal Trade Commission (FTC) to investigate price gouging at the pump.

"Illinois families have opened their wallets to help the victims of Hurricane Katrina, but they should not have their pockets picked by a group of greedy oil producers. In one month, Illinoisans have seen the price of gas jump 60 cents from $2.46 to $3.06 a gallon, and unless Congress takes action today, gas prices will continue to eat away at family budgets," Durbin said.

He added, "Consumers in Illinois and all across the country should not continue to pay the price because this Republican Congress refuses to act. The Federal Trade Commission must be given the authority and responsibility to investigate, fine and put an end to any price gouging taking place at any gas station. This is an immediate solution to an immediate crisis, but it does little to end the real long-term crisis. To achieve that end, we must significantly reduce our dependence on foreign oil."

The Democratic proposal will give emergency authority to the FTC to investigate gasoline price gouging if the President makes an emergency declaration in consultation with the Energy Department, the Department of Justice and the Federal Trade Commission. It will also give the FTC the ability to conduct investigations and the authority to fine companies for price gouging. Finally, it calls on the FTC to create a web site and toll free number so consumers could report price gouging.

Last month, Durbin joined U.S. Senators Harry Reid (D-NV) and Maria Cantwell (D-WA) in sending a letter to President Bush requesting that he direct the FTC to investigate gasoline prices.

"I applaud the efforts of our Attorney General in Illinois for taking the necessary steps to protect consumers from price gouging and urge the federal government to follow suit," Durbin concluded.

http://durbin.senate.gov/record.cfm?id=245742&&

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