FTC Rebuffs Democrats Over 'Hot Fuels' Fraud Allegations
Press Release
FTC Rebuffs Democrats Over 'Hot Fuels' Fraud Allegations
Washington, DC - Congressman Darrell Issa, today, released a letter from the Federal Trade Commission (FTC) refuting the claims of Oversight and Government Reform Committee Democrats on the subject of "Hot Fuels" and reiterated his previous accusation that Chairman Henry Waxman and Democrats on the committee, which held two hearings on "Hot Fuels," were substituting political theatre for legitimate, factually based oversight.
"Using suspect accusations to stir up anger over high energy costs may be shrewd politics but it is not good government oversight," said Rep. Darrell Issa (R-CA) the Ranking Member on the Domestic Policy Subcommittee. "The American people are increasingly cynical about this Democrat Congress because they know the Democrat Leadership is misleading the public and has few legislative accomplishments."
While Democrats have alleged a massive fraud that rips Americans off at the pump by not accounting for the expansion of gasoline on warmer days and have advocated legislation enacting new regulations, the letter from the FTC concluded that on an 80 degree day the expansion of gasoline in a 20 gallon purchase would equal a total of only 6 tablespoons (3 fluid ounces) of fuel for the entire fill-up. The FTC further argued that the sale of "Hot Fuels" may not cost consumers (due to automatic market adjustments), but new regulations that Democrats have proposed might actually raise fuel costs to consumers rather than lower them.
"Although the FTC has not conducted an investigation of this matter, it appears that the sale of hot fuel' might not cost consumers extra money, while the solution under consideration may raise consumer prices," wrote FTC Chairman Deborah Platt Majoras.
"While pursuing hot fuels' Democrats have fudged numbers, talked themselves silly about a non-issue, and concocted a fix that would actually cost consumers money," said Issa. "The FTC has reaffirmed that convenience stores that sell gas, like most small business, don't need this burdensome government regulation that will ultimately cost consumers."
A copy of the letter from the FTC to Rep. Issa can be found at:
http://issa.house.gov/index.cfm?FuseAction=Files.View&FileStore_id=264
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