Cantwell Advances Her Bill Targeting Fuel Market Anomalies Hurting Consumers

Press Release

Today, the U.S. Senate Committee on Commerce, Science, and Transportation advanced Senator Maria Cantwell's (D-WA) Transportation Fuel Market Transparency Act, which would significantly increase transportation fuel market transparency and direct the Federal Trade Commission (FTC) to proactively monitor and prevent any fraud or manipulation that may be artificially inflating pump prices. The legislation, which incorporated five amendments offered by Commerce Committee Republicans, is expected to be voted on by the full Senate during the next work period.

Senator Cantwell, who chairs the Senate Commerce Committee, said the following at today's Committee Executive Session:

"The rising prices of fuel is wreaking havoc on consumers," Senator Cantwell said. "The issue before us today is whether the FTC should have every tool possible to make sure that oil market manipulation in the petroleum sector is properly transparent."

The reported Transportation Fuel Market Transparency Act:

Strengthens Oversight. Enhances the FTC's 2007 authority to go after false market information designed to artificially inflate retail prices at the consumer's expense, including data submitted to private-sector price reporting agencies. Legislation broadens Commission's oversight authority to cover the full range of transportation fuels, including biofuels.
Ensures Dedicated Market Monitoring. Establishes a new Transportation Fuel Monitoring and Enforcement Unit at the FTC devoted to protecting the public interest by continuously and comprehensively monitoring and analyzing crude oil, gasoline, diesel, home heating oil, and other petroleum distillate markets in order to facilitate transparent and competitive market practices.
Targets Bad Actors. The new unit at the FTC is also charged with identifying any manipulation, reporting of false information, use of market power or any other unfair method of competition employed to distort transportation fuel markets to accrue illegal profits, and advising the full Commission whether to go after the perpetrators and impose relevant penalties.
Improves Market Transparency and Competition. Directs the Energy Information Administration to collect, analyze, and publish more detailed information related to the quantity and pricing of transportation fuels in order to facilitate price transparency, fair competition, and compliance with relevant international sanctions. This data may also be used to facilitate enhanced FTC efforts to police the transportation fuel markets.
Earlier this month, Democrats in the U.S. House of Representatives introduced different legislation to prevent price gouging at the pump. A fact sheet explaining the differences between the Senate (S. 4217) and House bills (H.R. 7688) is available HERE.

Senator Cantwell's legislation advances just one day after the New York Times reported that Glencore, a giant multi-national firm, will pay over $1.1 billion for manipulative and fraudulent conduct that went on for over 11 years and involved the head of Glencore's oil group. During an exchange with Ranking Member Wicker, Senator Cantwell said, "The public deserves to know that we are fighting for transparency in oil markets, and that transparency, just as our Attorney General and every agency, the Department of Justice, the CFTC and others are doing, that we are also making sure that there is transparency in these markets."

Source