September 20, 2005

Press Release | Contact: Kristie Greco (202) 225-6416


WASHINGTON, DC— U.S. Rep. Peter DeFazio (D-Springfield) today called on Governor Ted Kulongoski to organize a special session of the state legislature to pass a bill that would protect Oregonians from price gouging at the pump. Following is the text of the letter:

September 20, 2005

Governor Ted Kulongoski
State Capitol, Room 160
900 Court Street NE
Salem, OR 97301-4047


Dear Governor Kulongoski:

I am writing to urge you to call the Oregon Legislature into immediate special session for the purpose of enacting legislation to protect Oregonians from price gouging at the gas pump. A large number of states have anti-price gouging laws on the books, some of which have been triggered in the wake of Hurricane Katrina. Oregonians deserve similar protections from the unconscionable gouging at the hands of extraordinarily profitable oil companies. These companies are currently enjoying record-shattering profits and are sitting on billions of dollars of cash while consumers get hammered.

Over Labor Day weekend, Oregonians suffered an unwarranted 30 cent spike in the price of a gallon of gasoline. These high prices are draining the wallets of Oregonians struggling to make ends meet, forcing the cancellation of vacation plans, and significantly impacting the travel and tourism industry in Oregon. The government of Oregon must take action to protect consumers and businesses.

As I write this, another hurricane is barreling toward the Gulf Coast, oil prices on the world market are spiking again, which will surely be reflected in prices rising still further at the pump despite our isolation from the events in the region. But, even before Hurricane Katrina, gasoline prices in Oregon and around the country, both for regular and diesel, were at or near record highs. Prices spiked last year to record levels as well.

The price increases have only gotten worse in the wake of the hurricane damage to the oil infrastructure along the Gulf Coast. These price increases are suspect because the isolation of the Western U.S. from the U.S. production and distribution system prevalent in the rest of the country, including the Southeast, would seem to imply that our region should not have experienced price spikes essentially identical to those experienced elsewhere. The vast bulk of gasoline is delivered to Oregon via a pipeline from Puget Sound and down the Columbia River, neither of which, obviously, were impacted by the hurricane.

At the federal level, I have re-introduced legislation I originally offered in 2003 that includes several short-term and long-term strategies to protect consumers from record high gas prices. I also joined dozens of my colleagues in writing to the U.S. Attorney General and the Federal Trade Commission demanding an investigation into skyrocketing gas prices. And, I have joined the Democratic leadership in the U.S. House of Representatives in calling for a national anti-price gouging law, which would be easier to prosecute than the anti-trust statutes that are currently the only recourse. Unfortunately, these pleas to fight for consumers have been ignored by the Republican leadership in Congress and the White House. That is not likely to change anytime soon.

Therefore, the State of Oregon should not wait for the federal government to act to protect consumers. With gas and oil prices constantly hitting new record highs and oil companies collecting record profits, Oregonians have suffered long enough and deserve relief. Given the current leadership in Washington, D.C., that relief can only come from you and the Oregon legislature.

Thank you for your consideration of my request and your efforts to protect Oregonians from unfair profiteering by oil companies.

Sincerely,

PETER DeFAZIO

Member of Congress

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