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For Immediate Release
September 24, 2007 |
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CT Delegation Secures
GAO Study of Refinery Practices and their Influence on Gas
Prices
Delegation Seeks Answers
to Refinery Outages, Manipulation of Market Forces
WASHINGTON, DC – The entire Connecticut delegation
announced today that the nonpartisan and independent Government
Accountability Office (GAO), at the delegation’s request,
will review the oil and gas refining industry actions to determine
whether market and supply manipulation has occurred, as well
as to what extent their practices influence fuel prices.
In a letter dated May 18, 2007, the bipartisan group asked
the GAO to investigate the role that refineries play in determining
or influencing prices of fuel due to anticipated or unintended
outages and how they might profit from those shutdowns considering
the basic law of supply and demand.
In his response dated August 23, the Comptroller General
accepted the Members’ request and will order an official
GAO study to begin in October.
Click
her for May 18, 2007 letter and click
here for August 23, 2007 letter.
“As oil prices hit record highs and gasoline prices
creep upward, due in part to refinery outages, I am determined
to protect Connecticut families from gas price manipulation,”
said Senator Dodd. “That is why I am pleased that the
government’s independent watchdog has agreed to heed
our request for an investigation into the role planned refinery
outages might have in artificially raising gas prices.”
“If the federal government’s antitrust enforcers
had not stood by as refining companies merged and merged again,
then we would have a competitive market to prevent price manipulation,”
said Senator Joe Lieberman. “As things stand, we are
forced to scrutinize the refiners’ conduct after the
fact in an effort to ferret out anti-consumer behavior. I
am very glad the GAO will help us apply the needed scrutiny.
We owe it to consumers hit hard by spikes in gas prices.”
“Energy costs in Connecticut continue to rise. It makes
sense to ensure oil is being produced at our maximum capacity,
and if its not, what effect that may have on prices,”
said Congressman Chris Shays (CT-04).
“Working families are feeling the impact of record
gas prices as they try to heat their homes, fuel their cars
and make ends meet. Yet each quarter we learn that oil companies
continue to report record profits,” said Congresswoman
Rosa DeLauro (CT- 03). “The American people are rightly
skeptical about whether oil companies are artificially creating
a shortage to boost prices. This GAO investigation will shed
some light on refining capacity and whether these skyrocketing
gas prices are the result of market manipulation.”
“Connecticut families should not have to choose between
putting gas in their cars and food on their tables, especially
when the big oil companies are reporting record earnings.
If gas companies are inappropriately manipulating prices for
their own profit, we should know and they must be stopped.
In May, the House passed legislation that gives the Federal
Trade Commission and the states new authority to investigate
and prosecute predatory pricing. With that legislation and
the report the GAO is undertaking on our behalf we are bringing
new tools to the fight against price manipulation at the pump,”
stated Congressman John Larson (CT-01).
“Our nation’s refiners have operated with little
oversight for decades, and have suffered little recourse for
repeated outages and downtime. This GAO study may help to
spur the necessary oversight to stabilize the oil and gas
refining industry and prices. Eastern Connecticut’s
consumers pay some of the highest prices for fuel in the country
and they deserve answers,” stated Congressman Joe Courtney
(CT-02).
“Rising energy prices are hurting constituents and
businesses in my district and throughout the country. In addition
to supporting energy conservation and promoting alternative
energy sources, Congress must investigate any causes that
may have artificially inflated energy costs, particularly
fuel costs. I am happy that the GAO has agreed to work with
the Connecticut delegation to investigate refinery outages.
This study is a step in the right direction to provide relief
for Connecticut's families and businesses,” stated Rep.
Chris Murphy (CT-05).
CONTACT: JUSTINE SESSIONS (DODD)
PHONE: (202) 224-2823
ERIKA MASONHALL (LIEBERMAN)
PHONE: (202) 224-4041
BETSY HAWKINGS (SHAYS)
PHONE: (202) 225-5541
ADRIANA SURFAS (DELAURO)
PHONE: (202) 225-3661
EMILY BAROCAS (LARSON)
PHONE: (202) 225-7295
BRIAN FARBER (COURTNEY)
PHONE: (202) 225-2105
KRISTEN BOSSI (MURPHY)
PHONE: (202) 226-6736
Contact:
Sarah Moore, 202/225-5541
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