On the Issues
GASOLINE PRICE INVESTIGATION Following unusually large and sudden increases in the price of gasoline throughout Michigan and other Midwestern states in the spring of 2000 and again in 2001, in May, 2001, Senator Levin directed the Senate Permanent Subcommittee on Investigations to determine the causes of these spikes in gasoline prices, and what actions could be taken to stabilize gasoline prices. In April 2002, Senator Levin issued a report entitled Gas Prices: How Are They Really Set? (Link is to GPO website. See S. Hrg. 107-509, "Gas Prices: How Are They Really Set?" Report appears on p. 322 of hearing record.) One of the major findings of this report is that the decline in the number of refineries and increasing concentration within the refining industry are major reasons prices have become so volatile. On April 30 and May 2, 2002, Senator Levin held hearings on this subject (Link is to GPO website. See S. Hrg. 107-509, "Gas Prices: How Are They Really Set?"), with testimony from oil industry executives, economists, and state officials, including then-Attorney General of Michigan, Jennifer Granholm. At this hearing Senator Levin expressed his concern to the oil companies that some refiners have limited the supply of gasoline in order to boost prices. He has also urged the Federal Trade Commission to more closely review proposed mergers to ensure that mergers do not reduce supplies or increase prices. The April 2002 report Gas Prices: How Are They Really Set? (Link is to GPO website. See S. Hrg. 107-509, "Gas Prices: How Are They Really Set?" Report appears on p. 322 of hearing record.) contained the following findings regarding the price increases in the spring of 2000 and 2001:
As a result of rising oil prices in early 2006, Senator Levin directed the Senate Permanent Subcommittee on Investigations to look into the role that market speculation was playing in the rapid rise in energy prices. In June 2006, the Subcommittee released a report, "The Role of Market Speculation in Rising Oil and Gas Prices: A Need to Put a Cop on the Beat," that found that the traditional forces of supply and demand no longer fully account for sustained increases and price volatility in the oil and gasoline markets. The report determined that market speculation contributed to rising oil and gasoline prices, perhaps accounting for $20 out of a $70 barrel of oil, and that too many energy trades occurred without regulatory oversight. The report recommended new laws to increase market oversight and stop market manipulation. PSI Reports on Gasoline Prices:
Legislation supported by Senator Levin to address these problems:
|
Federal Prison Industries
In 2001, Senator Levin was able to enact legislation permitting private companies to compete against Federal Prison Industries for Department of Defense contracts. more >
Gasoline Price Investigation
Following unusually large and sudden increases in gasoline prices throughout the Midwest in 2000 and 2001, Senator Levin initiated an investigation to determine the causes of these price spikes. more >
![Senate Chamber](/congress110th/20081216223241im_/http://levin.senate.gov/images/photos/79x79/capitol3.jpg)
![](/congress110th/20081216223241im_/http://levin.senate.gov/images/misc/spacer.gif)
![](/congress110th/20081216223241im_/http://levin.senate.gov/images/misc/spacer.gif)
LEGISLATION
![Legislation - View the list of bills sponsored or cosponsored by Senator Levin.](/congress110th/20081216223241im_/http://levin.senate.gov/images/misc/spacer.gif)
COMMITTEES
![blank space](/congress110th/20081216223241im_/http://levin.senate.gov/images/misc/spacer.gif)
TASK FORCES
![blank space](/congress110th/20081216223241im_/http://levin.senate.gov/images/misc/spacer.gif)