Federal Price Gouging Prevention Act
Floor Speech
FEDERAL PRICE GOUGING PREVENTION ACT -- (House of Representatives - May 23, 2007)
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Ms. HIRONO. Mr. Speaker, I rise in support of H.R. 1252, the Federal Price Gouging Prevention Act.
I am a proud cosponsor of this bill, which makes it illegal for any company to sell gasoline at excessive prices or to take advantage of market conditions by increasing prices during an energy crisis. It allows the Federal Trade Commission and the States' Attorneys General to bring lawsuits against corporations that charge excessive prices for gasoline. The bill also permits investigations of companies suspected of price gouging and requires honest and accurate reporting of pricing practices.
In the first month of the 110th Congress, the House took away $14 billion in taxpayer subsidies from the oil companies. This money will be reinvested in alternative, renewable energy sources.
Yesterday the House passed a bill by a bipartisan 345-72 vote, a bill that authorizes the Justice Department to take legal action against OPEC state-controlled entities and governments that conspire to limit the supply or fix the price of oil.
Hawaii's consumers pay some of the highest gasoline prices in the Nation. In 1998, the State of Hawaii filed a lawsuit against the major oil companies operating in our state. The lawsuit revealed that 22 percent of an oil company's nationwide dealer profits came from Hawaii, a state that represented only 3 percent of the market. Clearly, Hawaii's consumers were contributing an excessive share of the company's profits in relation to market share.
Since President Bush took office, gas prices have more than doubled, and previous Congresses have failed to protect consumers from price increases. For the first time in years, Congress has begun exercising its oversight responsibilities. This is important given that the six largest oil companies made $30 billion in profits for the first quarter of 2007, on top of the $125 billion in record profits for 2006.
I urge my colleagues to vote for this bill, which aims to reduce the burden of high energy costs on American families and businesses, build on efforts to increase energy efficiency, lessen our dependence on foreign oil, and cut greenhouse gas emissions in the longer term.
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