Senator Schumer is making headlines today,
demanding a federal probe into price-gouging by the oil industry:
New York Senator Charles Schumer, speaking in front of a Hess station in Manhattan, called Tuesday for a federal investigation to see if oil companies and refiners are deliberately withholding gasoline production, taking advantage of the normal switch from winter gas to summer gas in an attempt to bid up prices.
"The bottom line is they are producing at 85 percent capacity when they should be producing over 90 percent," said Schumer. "Are they scaling back production? Only by subpoenaing the companies and looking in their books will we get that answer."
Senator Schumer was joined by House Minority Leader Pelosi, who issued a press release:
As Americans pay almost 90 percent more to fill their gas tanks since President Bush took office, oil companies continue to reap gigantic profits and oil executives receive astronomical compensation. Record prices, record retirement packages, and record profits are just the latest example of the wealthy few benefiting at the expense of hard-working Americans under the Bush Administration.
"The Republican Rubber Stamp Congress has passed two energy bills, costing taxpayers $12 billion for giveaways to big oil companies. But the Republican bills clearly have done nothing to lower gas prices, as the price of a barrel of oil has settled above $70 a barrel - the highest price in our history. Even the Chairman of the Federal Reserve agrees that gas prices are decreasing the purchasing power of American families and depressing the U.S. economy.
"Democrats have a plan to lower gas prices, taking America in a new direction that works for everyone, not just the few. Our plan would empower the Federal Trade Commission to crack down on price gouging to help bring down skyrocketing gas prices, increase production of alternative fuels, and rescind the billions of dollars in taxpayer subsidies, tax breaks, and royalty relief given to big oil and gas companies."
Democrats also sent a letter to President Bush today demanding action on both price gouging and energy independence. In it, Democrats point to S. 1735, the "Energy Emergency Consumer Protection Act of 2005". The bill has almost 30 co-sponsors (all Democrats), and would "give federal and state regulators new authority to prosecute price gouging in the wake of national energy emergencies, as well as put in place measures to ban manipulation and enhance the transparency of our nation's fuel markets."
We've all seen gas prices climb, but is it truly price gouging? Well, a study commissioned by the Foundation for Taxpayer & Consumer Rights released today concludes that in California, "corporate markups and profiteering are responsible for spring price spikes, not rising crude costs or the national switchover to higher-cost ethanol, as the oil industry claims."
No surprise there, of course. Unfortunately, no surprise at all.