WASHINGTON – U.S. Congressman Bart Stupak (D-Menominee) wrote today to U.S. Senators Hillary Clinton (D-N.Y.) and Barack Obama (D-Ill.) in response to comments regarding gas prices made in Wednesday night’s Democratic Presidential Debate.  When asked about gas prices approaching $4 a gallon and the burden that is placing on Americans, Sen. Clinton responded, “I believe there is market manipulation going on, particularly among energy traders.”  Sen. Obama noted, “It is absolutely true that we’ve got to investigate potential price gouging or market manipulation.”

“Senators Clinton and Obama have accurately identified the problem,” Stupak said.  “Excessive speculation by energy traders and price gouging are two of the most significant factors driving up the cost of gasoline, diesel, natural gas, home heating oil and all other energy commodities.  I have introduced legislation to address these problems.  But despite action in the House, Congress has not sent either bill to the President’s desk.”

Stupak, a member of the House Energy and Commerce Committee and chairman of its Subcommittee on Oversight and Investigations, has held hearings on price gouging and speculative energy trading.  To address these issues he introduced two separate pieces of legislation.

H.R. 594, The Prevent Unfair Manipulation of Prices (PUMP) Act, would provide oversight and increased penalties for energy traders found to be unfairly manipulating the price of crude oil and other energy commodities on the “over-the-counter” (OTC) trading markets.  It is estimated the PUMP Act would lower the cost of oil by up to $30 a barrel.  Traditionally, trading of energy commodities such as crude oil, gasoline, diesel fuel and natural gas has taken place on the New York Mercantile Exchange (NYMEX), with oversight by the Commodity Futures Trading Commission (CFTC).  However, an increasing amount of speculation takes place on the OTC markets, without any regulation or oversight by the federal government.

“The PUMP Act would require all energy traders to play by the same rules,” Stupak said.  “Without proper oversight, it is difficult to determine whether traders are basing their trades on market realities or just gaming the system to drive up prices.”

H.R. 1252, The Federal Energy Price Gouging Prevention Act, was passed by the House of Representatives on May 23, 2007 by a bi-partisan vote of 248 to 141.  It awaits action in the Senate.  This legislation would provide the Federal Trade Commission (FTC) with new authority to investigate and prosecute those who engage in predatory pricing and other unfair practices.

“Congress must give the FTC the authority to stop price gouging in order to protect Americans from paying unconscionably excessive prices at the pump,” Stupak wrote in the letter.  “I encourage you to work with the Senate Leadership to pass this bill so we can send an energy price gouging bill to the President’s desk.”

Stupak wrote to U.S. Secretary of Energy Samuel Bodman on April 4 asking for comments on the PUMP Act legislation and continues to push congressional leadership to bring the bill up for a vote.  He remains committed to working with his colleagues in Congress and the administration to pass legislation that provides Americans the immediate relief they need from high energy prices.

“Both Senator Clinton and Senator Obama have some very good ideas for our nation’s energy future,” Stupak said.  “I look forward to working with one of them as president to advance their policies.  But people in northern Michigan and across the country can’t afford to wait nine months for a new administration.  We need to take action now.”

Crude oil closed at all-time high of $114.93 a barrel in trading on Wednesday.  In 2001 – the year President Bush took office – oil was trading at $25.88 a barrel.  According to AAA Michigan, the statewide average for gas is $3.43 per gallon, 60 cents higher than a year ago.  The Upper Peninsula continues to have the highest gas prices in the state, with the average in Marquette at $3.49 per gallon.  The national average for gas is $3.42 a gallon, $2.03 higher than when President Bush took office.

The full text of Stupak’s letter is available at http://www.house.gov/stupak/2008_04_17_SenateLetter.pdf.