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Letter to Senator Orrin G. Hatch

By: Ron Wyden
By: Ron Wyden
Date: March 25, 2004
Location: Washington, DC
Issues: Criminal Justice


March 25, 2004

The Honorable Orrin G. Hatch
Chairman
Committee on the Judiciary
226 Dirksen Senate Office Building
Washington, DC 20510

Dear Chairman Hatch:

I am writing to draw your attention to the burgeoning concern over our nation's rising gasoline prices. According to the Department of Energy, the average retail price of gasoline in the United States is at an all-time high. As of March 22, 2004, the national average price for regular gas was $1.74 per gallon. This represents an increase of 60 cents per gallon since 2001. Some energy experts are predicting that the price of a gallon of gas may rise to $2.50 or even $3.00 this summer in some places. Higher gasoline prices make it more difficult for Americans to engage in day-to-day activities and make it costlier for U.S. companies to do business.

When such increases are the result of normal market forces, they are more understandable to those who bear the increased costs. However, the perception that price manipulation is taking place undermines confidence in our markets and in the law enforcement mechanisms that we rely on to guard against anticompetitive behavior. There is widespread concern about this increase-not only because it may be indicative of anticompetitive activity, but also because it may be the result of international cartels that prevent normal market forces from determining the price of oil. Given the economic costs of these higher prices, as well as the concerns about the integrity of the process by which gasoline prices are determined, I suggest that the Judiciary Committee hold hearings on the high price of gasoline as well as proposals to address this issue. Senator Wyden has recently introduced legislation, S.1737, that has been referred to the Judiciary Committee, in connection with these matters. I look forward to working with you, along with Senators Kohl and DeWine and others who may be interested in these important matters to conduct hearings at the earliest opportunity.

Sincerely,

PATRICK LEAHY
Ranking Democratic Member

cc: The Honorable Herb Kohl
The Honorable Mike DeWine
The Honorable Ron Wyden

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