In 2005, from mid-March to late-May prices surged from $1.90 to $2.25. In 2006, from $2.30 to $2.90. In 2007, from $2.40 to $3.30 (and still rising). We have seen prices rise from March 15 to May 30, 18%, 26%, and 37+% the last three years.
Posted on 05/23/2007 1:33:04 PM PDT by libertarianPA
WASHINGTON - The House, eager to do something about record high gasoline prices in advance of the Memorial Day weekend, voted narrowly Wednesday to approve stiff penalties for those found guilty of gasoline price gouging.
The bill directs the Federal Trade Commission and Justice Department to go after oil companies, traders or retail operators if they take "unfair advantage" or charge "unconscionably excessive" prices for gasoline and other fuels.
The White House called the measure a form of price controls that could result in fuel shortages. It said President Bush would be urged to veto the legislation should it pass Congress.
The bill needed the approval of two-thirds of the members of the House because the leadership considered it under an expedited legislative process. Thus, the 284-141 vote was only one over the threshold for passage. A similar measure is being considered by the Senate.
The bill would for the first time create a federal law making energy price gouging illegal. It would cover not only gasoline, but also other fuels such as natural gas and heating oil.
Rep. Bart Stupak (news, bio, voting record), D-Mich., its chief sponsor, in urging his colleagues to support the bill said the issue was whether "to side with Big Oil (or) ... side with consumers who are being ripped off at the gas pump."
But Stupak was forced to soften the bill so that he could get it passed by requiring a president to first declare an energy emergency before the anti-gouging law could be enforced. Oil-state Democrats had wanted such limits.
The bill calls for criminal penalties of up to $150 million for corporations and up to $2 million and a jail sentence of up to 10 years for individuals found to be engaged in price gouging.
Opponents said the legislation was too vague and amounts to price controls.
"I don't know what `unconscionably excessive' means," Rep. Joe Barton (news, bio, voting record), R-Texas, complained, referring to a phrase that would trigger a price gouging prosecution.
Barton said today's high gasoline prices are the result of supply and demand and not price gouging. "Demand has gone up and supply has not gone up. ... and the price has gone up," said Barton.
The White House said the administration "strongly opposes" the bill and the president would be urged to veto it if it passes Congress.
It "would harm consumers, the very people the bill is touted to protect," said a White House statement to lawmakers. It said price gouging legislation would amount to "price controls and in some cases bring back long gas lines reminiscent of the 1970s."
Oil company lobbyists have argued that when there are tight markets and rising prices, a vague gouging definition would inhibit refiners and retailers from adding supplies for fear of being taken to court.
"Mom and Pop grocer and gasoline station owners can't wonder what every court is going to decide," said Rep. Roy Blunt (news, bio, voting record), R-Mo., the minority whip. He said the law would create "undue hardship for ... people trying to make a living."
But the bill's supporters argued that states can't combat energy price gouging, leaving motorists at the whim of arbitrary oil company pricing. Twenty-nine states currently have energy price gouging laws, but they vary in detail and under in terms of what conditions would trigger them.
Another anecdote! Who'd have thunk it!
Here's where gasoline/petroleum prices are set:
http://bloomberg.com/markets/commodities/cfutures.html
With your keen observation that prices always increase before Memorial Day you could make a real killing, just like Hillary turned $1000 into $100,000 in ten months in the cattle futures market.
Isn't this the anniversary of last years Memorial weekend leak????
The leak was in March of 2006, not May.
So there seems to have been a surge in gas prices during mid to late May of 2004, 2005, 2006, and 2007.
Not In My BackYard
Robbers? What exactly have they stolen from you?
LOL!
In 2005, from mid-March to late-May prices surged from $1.90 to $2.25. In 2006, from $2.30 to $2.90. In 2007, from $2.40 to $3.30 (and still rising). We have seen prices rise from March 15 to May 30, 18%, 26%, and 37+% the last three years.
The last four years there have been significant run ups in gas prices from mid-March to end of May of 18-40%.
I do not see your claim. Prices in 2004 and 2005 were falling the end of May.
Your observation that gas consumption was going up over memorial day is a good one. Only two solutions for lower prices 1. lower consumption or 2. more production
Crude and gas prices don’t go in lockstep. The chart I posted and the one you posted previously show what gas prices did.
That's not the title I see at the article. Besides, oil prices are down significantly from recent (two year) highs..
Thanks, I did not think that statement would draw so much fire. I thought it had been obvious the last few years. Obviously the solution is not a government price controls. We do need to cut consumption and increase supply.
Just having one chamber of Congress pass this legislation seems to have had an instant effect in the midstate PA region...Rutter’s (notorious for having jacked priced 50 cents per gallon on September 11, 2001) dropped four cents since this morning. Still $3.05, but headed the right direction.
How about we go after grandstanding politicans for gouging us with higher taxes on everything, including gasoline?
Ok.. when do we get to arrest and jail every one of these jackasses who voted for this??
They make FAR more per gallon of gas than the people who supply it!!
“Well, America wanted the politicians to do “anything” about gas prices... this is anything.”
Not true. You are thinking about the American media. I read the letters to the editor and opinion sections of many papers. Illegal immigration has been the number one topic for a while. (See how they listened on that) Gas prices wouldn’t even be in the top ten subjects.
drill, drill, drill,
build refineries, then build some more
refuse to allow wire transfers to Mexico unless they sell us their oil for $25 a barrel.
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