WASHINGTON – Today, Congress considered a Republican led bill that was sold as a measure to bring down gas prices and increase gasoline production. Unfortunately, the GOP bill will do nothing to bring down gas prices or protect consumers from future price gouging.

Congressman Bart Stupak (D-Menominee) led the Democrats on the floor of the House of Representatives in offering an amendment to the GOP bill that would have provided real relief at the gas pump, ensured stability in future supplies, and provided significant consumer protections from future price gouging.  Unfortunately, the amendment was defeated on a vote of 199-222. In the end, Stupak voted against the Republican bill that passed on a vote of 212-210, citing its failures to address rising gasoline prices, home heating costs and natural gas prices.

“The Republican bill does nothing to address natural gas or propane prices even though natural gas prices are expected to rise by 77% in the Midwest this winter,” Stupak said. “This is just one example of many on how the Republican bill is simply a permission slip for refineries to continue hiking prices while families are forced to choose between eating or gassing up their cars or choose between buying prescription drugs or heating their homes.”

The Stupak amendment would give the President authority to take immediate action in the face of an energy crisis by declaring a national energy emergency. Stupak’s substitute would provide the Federal Trade Commission (FTC) with new authority 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.  This includes the gouging of gasoline, home heating oil, propane or natural gas.

“Unfortunately, some people have looked at Katrina, not as a chance to give, but as an opportunity to steal.  Some have decided to take advantage of this terrible tragedy and line their own pockets by price gouging the American people at the pump,” Stupak said. “I opposed the Republican bill because of its gross limitations in protecting American consumers and allowing oil refineries the ability to continue price gouging practices. My amendment would protect ALL consumers from unfair gas prices and punish those who think a time of tragedy is the right time to rob Americans of their hard earned money.”

The amendment would also empower the federal government to impose tough civil penalties of up to triple damages of all excess profits on companies that have cheated consumers. Stupak took issue with the Republican bill stating that it provides no additional penalties for those who engage in price gouging. Further, the Stupak amendment would also provide relief to consumers paying skyrocketing energy and transportation costs and increase funding for the Low-Income Home Energy Assistance Program (LIHEAP) through fines from price-gouging companies.

Perhaps one of the most compelling arguments for voting against the Republican bill came from one of their own members.  Congressman Sherwood Boehlert (R-NY) said in a letter he circulated to his GOP colleagues that the bill “is bad for consumers and taxpayers.  H.R. 3893 won’t reduce gas prices, but it will raise oil company profits.”

*An actuality is available at 1-800-320-6091. Enter access code 2866.

Price Gouging Side-by-Side Comparison

**Prepared by the office of Congressman Bart Stupak

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