Washington, D.C. – Congressman Edolphus Towns, 10th District, New York has joined the fight to prevent price gouging at the gas pump.  Congressman Towns supported a vote to approve new tools that would fight record high gas prices. H.R. 1252 "The Federal Price Gouging Prevention Act" passed the U.S. House with a vote of 284-141.

This bill cracks down on gas price gouging as well as OPEC state-controlled entities that conspire to limit the supply or fix the price of oil.  Today's vote comes as families in New York are paying an average of $3.22 a gallon for gasoline.

 “My constituents are suffering each time they go to the gas station,” said Congressman Towns. “I was proud to join the bipartisan effort to support legislation that will curb price gouging and reprimand those who attempt to fix the price of oil and stick the American people with the bill.”

On Tuesday, the U.S. House approved H.R. 2264 which authorizes the Justice Department to take legal action against OPEC state-controlled entities that participate in conspiracies to limit the supply, or fix the price, of oil. Nations or organizations that limit oil supply can artificially inflate the cost of gas which in turn hurts American consumers. 

The other piece of legislation, The Federal Price Gouging Prevention Act, H.R. 1252, gives the Federal Trade Commission the authority to investigate and punish companies that artificially inflate the price of gas. It sets criminal penalties for price gouging and permits states to bring lawsuits against wholesalers or retailers who engage in such practices.

While a bipartisan majority in Congress supports these bills, President Bush has threatened to veto both pieces of legislation.

“President Bush is wrong to oppose these bills and I urge him to join our efforts to bring down the cost of gasoline," added Congressman Towns.

Nationwide, families are paying $3.22 a gallon on average for regular gasoline.  That amount is more than double the cost when Bush took office and an increase of 89 cents from the beginning of the year. [www.fuelgaugereport.com, 5/23/07]  Last year, families paid $1,000 more on average for gasoline than in 2001, and each additional 10 cents per gallon of gasoline adds $14 billion to America’s annual gasoline bill.  [USA Today, 5/17/07; GAO, 2006]

The high cost for families come as oil companies continue to prosper. The six largest oil companies announced $30 billion in profits for the first quarter of 2007.  This is on top of the $125 billion in record profits they made in 2006.

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