WASHINGTON – Late last night, members of the House Energy and Commerce Committee passed a new energy bill on price gouging proposed by the Republican majority. Congressman Bart Stupak (D-MI) opposed the bill citing its gross limitations in protecting American consumers and allowing oil refineries the ability to continue price gouging practices.

"This Republican bill does nothing to stop refineries from continuing to gouge American consumers. Their bill targets gas stations only located in a disaster area while allowing big oil to price gouge the rest of America. In the past year, gas station operators have limited their cost of a gallon of gas to 5% while crude oil producers increased their price by 46% and refineries a whopping 255%," Stupak said. "Price gouging is blatantly taking place at the refinery level and this bill does nothing to stop it."

Stupak continued, "The anti-gouging provisions in the Republican bill are limited only to gasoline and diesel fuel and only when the President declares a natural disaster. Then only the area affected by the disaster has price limitations while the rest of the country is left to fend for itself. Today, under this bill, because of Hurricanes Katrina and Rita, only in parts of Texas, Louisiana, Alabama and Mississippi would gas stations be prevented from price gouging on gasoline and diesel. However, oil companies and refineries can legally charge unconscionable, excessive profits on the rest of the nation. This bill is simply the Republicans saying they’re concerned about the cost of gasoline while they give a wink and a nudge to their friends at the big oil companies to continue to price gouge the American people. It’s a joke of a price gouging bill."

Yesterday, Stupak led Democrats in fighting to end gas price gouging by offering an amendment to the Republican bill based on his F.R.E.E. Act, Federal Response to Energy Emergencies Act (H.R. 3936). Republicans defeated the measure on a party line vote.

Stupak’s bill will give the President the authority to take immediate action in the face of an energy crisis by declaring a national energy emergency and making it illegal for the sale of crude oil, home heating oil, gasoline, natural gas or propane at unconscionable prices. The legislation would allow the Federal Trade Commission (FTC) for the first time ever to define price gouging and to investigate and prosecute those who engage in this "predatory pricing", from oil companies on down to local gas stations, with an emphasis on those who profit most.

Unlike the Republican bill, the Stupak bill will protect consumers against price gouging on all petroleum products anywhere and at anytime throughout the country. In addition, Stupak’s legislation would empower the federal government to impose tough criminal and civil penalties of up to three times the amount of excess profits made by the companies.

"Eight governors wrote to Congress last week asking for federal price gouging legislation," Stupak said. "They stated that ‘to price-gouge consumers under normal circumstances is dishonest enough, but to make money off of the severe misfortune of others is downright immoral.’ I agree but currently only 28 states have laws preventing price gouging. There is no oversight protection on the federal level at all. Citizens in this country are pleading with us to do something to protect them from these excessive gas prices."

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