Text of Senator Charles Schumer's Letter to Chairman Timothy Morris Federal Trade Commission
Dear Chairman Muris:
I am writing because I am concerned about recent reports nationwide of spikes in gasoline prices. As we gear up for a potential war in Iraq and more potential increases in crude oil prices, I am requesting that the Federal Trade Commission launch an investigation into gasoline price gouging across the country.
With U.S. crude oil stocks sinking to record lows and the Bush Administration increasing demand pressure on the crude market with its recent order of 30 million barrels for the Strategic Petroleum Reserve, crude prices will only go higher in the near future. Any conflict in the Middle East as well as further problems in Venezuela will send markets soaring. With this upward pressure on crude prices, we must ensure that any gasoline price increase is the result of market movement rather than unscrupulous businesses seeking to exploit these uncertain times.
This is especially true because reactionary rises in gasoline prices will put enormous pressure on American consumers and industry, both already struggling because of the poor economy. Unfortunately, it appears is if price gouging is already taking place. On Tuesday, crude oil reached an all-time high of $35.60, closing up 96 cents from Monday. As you know, it normally takes weeks or even months for rising crude prices to drive up gasoline prices, yet according to the American Automobile Association, national gas prices rose over three cents on average between Monday and Tuesday, hitting $1.605 per gallon.
Gas prices in New York State are mirroring this national trend, with prices in most cities just a few cents below the all-time highs reached during the summer of 2001. Average gas prices in Binghamton, Buffalo, Long Island, New York City, Rochester, Syracuse and Utica have all topped $1.70 per gallon, while gas prices in Albany, Schenectady, Troy, Syracuse, Utica and Rome all rose at least 1.3 cents between yesterday and today.
As these trends demonstrate, it appears as if price gouging is taking place across the country. I urge you to launch an immediate investigation into these developments and to prosecute those who would exploit the current uncertainty to the fullest extent of the law.
Sincerely,
Charles Schumer
U.S. Senator