Durbin Says Consumers Can't Catch an Easter Break; Renews Call for Congressional Action to Provice Relief at the Gas Pump

DURBIN SAYS CONSUMERS CAN'T CATCH AN EASTER BREAK; RENEWS CALL FOR CONGRESSIONAL ACTION TO PROVIDE RELIEF AT THE GAS PUMP

With summer driving season fast approaching and gasoline prices continuing to rise, U.S. Senator Dick Durbin (D-IL) today said consumers in Illinois are demanding Congressional action to bring relief at the pump. Durbin noted that the Midwest average price of a gallon of regular gasoline last week was $2.64, a 16% increase from last year's mid-April average of $2.28.

Durbin added that consumers are angry and frustrated that Congress and the Bush Administration have been asleep at the wheel while energy giants experienced record profits last year, including Exxon Mobil, which reaped almost $10 billion in the fourth quarter, a new record for corporate profits.

"Oil companies are living in the fast lane and consumers are being left on the side of the road," Durbin said. "How many more billions of dollars in outrageous profits will oil and gas companies continue to make before Congress finally steps in to protect consumers and businesses hit hard by the skyrocketing costs."

Durbin called for immediate Congressional action on his legislation to help channel record oil company profits back to American families. Durbin's Windfall Profits Tax bill would impose an excise tax on integrated oil and gas companies equal to 50% of their profits over a baseline price of $40 per barrel of oil. The $40 baseline was established by taking the average price of oil in the year 2004. In 2004, oil and gas companies were already realizing record profits. On April 13, 2006, the price of a barrel of crude oil was $69.32 compared to $50.21 a barrel in mid-April 2005, a 37% increase.

Under Durbin's bill, the revenues would be used to fund a consumer rebate, provide additional resources to fully fund the Low Income Home Energy Assistance Program, provide for a manufacturers incentive to improve the fuel economy of automobiles and provide additional revenue to the Highway Trust Fund to improve roadways and mass transit.

"American consumers are paying the price for an energy policy that rewards the greed of oil and gas companies and is too dependent on foreign oil. Offering consumers immediate relief from the rising cost of energy is only fair," Durbin said.

Durbin also noted that the Bush Administration has so far failed to live up to its obligation to protect consumers from potential antitrust violations by the oil and gas giants. Durbin said that a bill he supports, the Petroleum Industry Antitrust Act of 2006, will not only give the Department of Justice new authority to prosecute the domestic energy giants, but also empowers the government to charge foreign energy cartels that act in collusion to limit production or set prices. The bill was introduced by Judiciary Committee Chairman Senator Arlen Specter (R-PA).

http://durbin.senate.gov/releases.cfm