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Capito Wants Price Gougers to Face Hefty Fine

Date: Oct. 7, 2005
Location: Washington, DC
Issues: Oil and Gas


Capito Wants Price Gougers to Face Hefty Fine
10/7/2005

WASHINGTON, DC - (10/7) - Because West Virginians are baring the brunt of rising gasoline and home heating oil prices, Congresswoman Shelley Moore Capito supported legislation today that will place a hefty $11,000 per violation fine on gasoline price gougers who spike prices of gasoline and home heating oil to increase profits.

"An $11,000 per violation fine will obliterate the profits a price gouger would gain from hiking gas prices in the wake of an emergency like Hurricanes Katrina and Rita," noted Capito. "With that kind of threat to profits gasoline providers are much more likely to keep prices at the pump as low as possible. The GAS Act takes strong steps to ensure motorists are not gouged at the pump by greedy opportunists who are looking to make a quick buck during an emergency."

The new federal provisions included in the GAS Act will reinforce the current law on the books in West Virginia. West Virginia is one of 28 states that currently have an anti-gouging law. Under West Virginia law, it is unlawful to sell goods or services that are vital and necessary for the health, safety, and welfare of consumers at a 10% increase over the price of the good or service 10 days before the declaration of a state of emergency.

Capito added, "I also want to see legitimate reforms made to prevent three-dollar a gallon gasoline prices when our nation faces an emergency. One reason prices spike is because we cant refine crude oil into gasoline or home heating fuel fast enough because.

The Gasoline for Americas Security (GAS) Act of 2005 (H.R. 3893):

* Encourages new refineries to increase supply and address soaring gasoline prices;

* At the request of a states Governor, the process for building a new coal-burning power plant that produces motor vehicle fuel can be dealt with exclusively through the U.S. Department of Energy;

* Limits "boutique fuels" that have propped up gasoline process by artificially limiting supply;

* Promotes new pipelines to get new crude oil and refined product to consumers at lower prices; Requires a Federal Trade Commission (FTC) study into credit card company processing fees, which may inflate consumer costs.

The U.S. House passed the Gasoline for Americas Security (GAS) Act of 2005 (H.R. 3893) with Capitos support by a vote of 212 to 210.

http://capito.house.gov/press_office/detail-page.aspx?id=106&whichone=pr

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