For Immediate Release
May 20, 2008 |
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FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961 |
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House Votes to Combat Oil Cartel
Price Fixing
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Legislation Will Hold OPEC and Others Accountable for Anticompetitive Practices, Lowering Gas Prices
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(Washington D.C.)- The House of Representatives today passed legislation to combat record gas prices by cracking down on OPEC-controlled entities and oil companies for oil price fixing. The bill, the Gas Price Relief for Consumers Act (HR 6074), passed by a vote of 324-84.
“With gas approaching four bucks a gallon in Michigan, the federal government must take every responsible step it can to help provide families some relief at the pump,” said Congressman Sander Levin. “It is time U.S. authorities had the power to hold the OPEC cartel accountable under federal anti-trust laws.”
OPEC, the world’s best known oil cartel, accounts for more than two-thirds of global oil production, and OPEC’s oil exports represent 65% of oil traded internationally. The legislation approved today, also called the “NOPEC” bill, gives the U.S. Justice Department the ability to prosecute anticompetitive conduct committed by international cartels like OPEC that restrict supply and drives up prices. The bill would remove the immunity of sovereign states which effectively puts OPEC and its members beyond the reach of U.S. anti-trust laws. The bill also creates a Department of Justice Petroleum Industry Antitrust Task Force to examine the existence and effects of price gouging in the sale of gasoline, anticompetitive price discrimination by petroleum refiners, unilateral actions to withhold supply to inflate the prices and manipulation in futures markets.
Last week, Congress passed legislation to help lower gas prices by suspending shipments of oil to the strategic petroleum reserve (which is 97% full, containing more than 700 million barrels of oil), putting 76,000 more barrels of oil supply on the market each day. The House will likely also consider a package of tax incentives later this week to promote investment in renewable energy, including a provision authored by Rep. Levin to expand the tax credit available to gas stations that install E85 fuel pumps.
Across the country, gas prices have continued to climb in recent months, hitting a record $3.80 per gallon national average for regular self-serve gasoline. In Michigan, gas prices have jumped nearly 40 cents per gallon in the last month alone. According to AAA, the average cost of a gallon of gas in Michigan is $3.91, the sixth highest among the 48 contiguous states. AAA predicts the national average will likely exceed $4 per gallon soon, meaning Michigan’s average could rise well above $4 in the coming weeks.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
