Democrats Jump White House on Gas Price Gouging

[Bob Geiger]

Senate Democrats are now hammering on George W. Bush to drop his lifelong loyalty to Big Oil by supporting a Senate bill that would work to eliminate gasoline price-gouging. With the family vacation season almost upon us, Senate Minority Leader Harry Reid (D-NV) and 15 Democratic Senators sent a letter to Bush this week asking for his support of S. 1735, a bill that would provide some degree of protection to consumers during any future oil crunches.

"You are undoubtedly aware of projections from the federal Energy Information Administration (EIA) that gas prices will rise 25 cents per gallon across this nation compared to last summer," said Senate Democrats in the letter. "In light of these projections, we believe a federal anti-price gouging law should be enacted before the summer driving season begins in earnest, this Memorial Day."

Memorial Day weekend is seen by many Americans -- already struggling with $3.00-per-gallon gas prices -- as the traditional beginning of the summer driving season.

The Democratic Senators also renewed their call for a bipartisan energy summit to solve the dangerous problem of America’s dependence on foreign oil.

"A strong federal price gouging law is only one element of the equation when it comes to putting our nation on the path toward greater energy independence," continued the Democratic letter. "A comprehensive and smart approach to this vital issue of national security will help curb the tremendous volatility in energy prices that is impacting consumers, businesses and the American economy as a whole. We have thus far been disappointed by your Administrations’ lack of response to our invitation to co-host an emergency bipartisan national energy summit. This offer still stands. However, in the absence of leadership or cooperation from your Administration, we will soon be moving ahead with our own set of real solutions, which will spur the kind of innovation and investment America needs to secure its energy future for the 21st Century."

Authored by Senator Maria Cantwell (D-WA) and cosponsored by 28 Democrats and Senator Jim Jeffords (I-VT), S. 1735 "Authorizes the President to declare a federal energy emergency if the health, safety, welfare, or economic well-being of American citizens is at risk" due to a number of conditions including an actual or predicted shortage of oil, or "significant pricing anomalies in national energy markets" for oil products, such as gasoline.

The Energy Emergency Consumer Protection Act of 2005, empowers the Federal Trade Commission and state attorneys general to enforce the law and prescribes maximum civil and criminal penalties for violations. It was introduced in late September after Hurricane Katrina and in response to the rapid rise is consumer gas prices -- in some places, prices went to well over $5.00 per gallon.

"Even before the devastation caused by Hurricane Katrina and its tragic aftermath, skyrocketing oil and gasoline prices were burdening American families and our Nation's economy -- with the notable exception of the oil industry, which continued to rack up record profits," said Cantwell in September, while introducing her bill. "While the oil companies have filled their coffers with record profits over the past few years, our Nation's airlines, truckers, farmers and small businesses across the board are struggling to make ends meet because of skyrocketing fuel costs. Worker pensions are in jeopardy, and families are already feeling the squeeze."

The bill was read on the Senate floor on September 20, 2005 and has languished ever since in the Republican-led Committee on Commerce, Science, and Transportation. With the committee's 10 Democrats outnumbered by 12 Republicans -- 13, if you include faux Democrat Ben Nelson of Nebraska -- Cantwell's legislation has received no attention or markups ever since.

Also jumping into the fray this week were New Jersey's Democratic Senators Frank Lautenberg and Robert Menendez who also prodded Bush to take action against rising gas prices.

"Under your leadership, a gallon of gasoline has risen from $1.16 per gallon to $2.73 since the end of 2001," said the New Jersey Senators in a letter to Bush. "This enormous price increase is hitting millions of American families and businesses very hard."

Lautenberg and Menendez also suggested constructive steps the White House could take, such as taking action against the Organization of Petroleum Exporting Countries (OPEC), after refusing earlier this year to make reform of OPEC a condition of Saudi Arabia's accession to the World Trade Organization (WTO). Bush refused to do this -- let's not forget Bush's close personal ties to the Saudi Royal Family -- despite the OPEC cartel violating WTO's prohibition on export quotas.

The New Jersey Democrats urged the President to file an official complaint with the WTO against OPEC's illegal actions.

"This year, you inexplicably refused to make reform of OPEC a condition of Saudi Arabia's accession to the World Trade Organization (WTO), despite the OPEC cartel's harmful impact on the U.S. market," said the Lautenberg-Menendez letter.

Of course, all of this comes in the wake of the much-publicized, $400 million retirement package for outgoing ExxonMobil CEO Lee Raymond, which Senator Byron Dorgan (D-ND) called a “shameful display of greed.” Dorgan has called for ExxonMobil to be brought before a congressional hearing to explain their actions and has also demanded a Securities and Exchange Commission (SEC) investigation of the deal.

“These major oil companies have hooked their hose up to the pocketbooks of American citizens and are sucking money from ordinary Americans into the treasury of the giant oil companies," said Dorgan. "The result is that Exxon reported the highest profit in the history of corporate America last year. Today we read that while farmers struggle to pay the fuel bills and drivers are paying painful prices to fill their gas tanks the oil companies are rolling in cash and their retired executives are getting obscene retirement benefits.”

How much will actually happen remains to be seen as Democrats are confronted with a White House with crime-family ethics and a legislative branch controlled by a GOP that asks "how high?" when Bush, Cheney or Rove tells them to jump. And how likely do you think Bush will be to act against the massive oil companies that donate so much to conservative causes or do anything to disrupt his hand-holding relationship with the Saudi Royal family?

But his hand may, to a tiny extent be forced, as Democrats wisely invoke Bush's own call to action in dealing with America's oil-dependence problem.

Said Lautenberg and Menendez in their letter to former oil man Bush: "In your State of the Union address you said keeping America competitive requires affordable energy. As the big oil companies are posting record profits, many families are finding it difficult to balance the costs of filling their tanks with other critical needs of their families. We urge you to address the growing crisis before the summer travel season begins."

You can reach Bob Geiger at [e-mail]

[FloridaPat]

1. I thought we already had a federal price gouging law. And we'll

be lucky that 25 cents is all the further it rises.

[wtbymark]

2. This chimp doesn't read anything!

he will wad his gum up in it and go for a three pointer

[rodeodance]

3. the letter will go in the trash bin. sorry but i am not optimistic about

this one. but, at least the Dems are onto it.

[exlrrp]

4. Lets have more of this!!

I think the best way to seperate Bush from his base, though painful to us all, is to have the price of gas go up. Lets just keep pointing out who's in charge of our government when this is happening, how rotten their policies are. Lets just stand here and point at the Bush Administtration--theyre the ones in charge. Remember how good it was back in Clinton Days? Are YOU better off now than you were 5 years ago? Thats what we need to keep asking.
What the US has to realize is the world has been paying high gas prices forever and this is equalizing out and that the Bush administration has put its eggs in the wrong basket (again!!) by not mandating lower CAFE standards and other gas guzzling policies. SUVs and Hummers been selling like there's no tommorrow, but there IS a tommorrow. and its not far off.
I think the higher gas prices will hurt Bush and the Repubs more than anything else so far. Extra Point Q: Will there be an October Surprise?

[The Wizard]

9. Rubber Stamp Republicans

Without them, Bush's failed policies would only be a hair brained agenda.
Hang this albatross around their necks and make them inhale the stink of the rotting carcass that was once a great nation. Our treasury has been looted and the contents have found their way to off shore tax shelters where that money will never circulate. Left unfettered, the free market becomes a totalitarian fixed market that benefits only Bush's base, "the haves and the have mores." Our economy has been sacked for the benefit of Bush's major campaign contributors.
The widening gap between the rich and poor is at the cost of the shrinking middle class. The poor don't have the means to fight a corrupt theocratic oligarchy and are subject to be permanent wage slaves. All the good jobs are outsourced, and we will be fighting for the crumbs that "trickle down."
This dangerous inbreeding of business and government is fascism, and we the people are making the rope they will use to hang us, either together or one at a time.
The daily erosion of Constitutional guarantees and protections is an indication that elections are meaningless because of the Republican/Diebold cartel. Stalin reminded everyone it's not who votes, but who counts the votes that matters. Like Stalin, Hitler and a rouges gallery of brutal dictators, Bushigula has donned military garb.
The impotent punks passing themselves off as our protectors are nothing short of organized crime on a scale never before seen.
It's time for a nation wide strike where everyone bites the bullet and stays home from work for a day and refuses to drive a car.
One work day a week means the government's tax coffers are 20% short as is the oil cartel's profits.
It's always about the money, or in the mind of the Republican archetype, stealing other people's money and minding other people's business.
With pain comes awareness. Let's hope the pain of making the choice of eating or burgeoning energy costs awakens enough people to cause the Bush junta to sink into the quagmire it has created.
The road to empire is paved with failed republics.
Thank you for reading my Saturday morning rant.

[307 MMS]

14. Sorry, Wizard

That sir, is not a Saturday morning rant. That happens to be a well thought out and well written description of what's happening and what needs to be done! My problem is, the fact that the Dems have taken soooo long to mount anything resembling outrage and anger at any of this, I just can't help but wonder about complicity. I'd like to see the stock portfolios of some of these so-called representatives of the "people". The "people" are now the "haves and have mores" youo describe. The rest of us can go screw! It's all about politics and the almighty dollar. Been that way forever. It's just so f*ckin' in-your-face right now, it's disgusting.
The screaming by the Dems should have started when shit-for brains was selected by the not-so Supreme Court. What has taken so long! Oh yeah....9/11,9/11,9/11,9/11....Sheesh!!!

[ChairmanAgnostic]

5. damn, this is NOT good.

no senator, no law, no resolution can solve the problem, because the problem is not merely the high price of gas.
The problem is far deeper, wider and more troubling.

It has to do with Cheney's energy meeting. It has to do with the war in Iraq. It has to do with the upcoming invasion of Iran. It has to do with the White House being in Israel's coat pocket. It has to do with Rice pretending to be a diplomat. It has to do with Cheney pretending not to be the czar. It has to do with Bush hearing messianic voices in his head. It has to do with everything touched, in any way, by this adminstration, from torture, illegal arrests, illegal searches and seizures, illegal wiretaps, - christ, this list gets longer each day.

The problem is the Administration. That is what needs to be changed.

[seafan]

6. The truth shall set us free. Well said! n/t

[jasop]

7. Absolutely Positively Without a Doubt, you are CORRECT! n/t

[0007]

8. And for the change to be effective it has to be immediate.

[cornermouse]

10. Its about class, wealth, and contempt for the people.

A feeling of entitlement and superiority. That's what it all boils down to so don't look for anything to happen.

God help us, but I think he truly believes that garbage he keeps spouting that Americans won't do certain jobs, and the correlated garbage that he takes care not to say that the massive wages and benefits that the CEOs are taking being nothing more than their due, and workers attempts to get an actual living wage as greed.

He has nothing but contempt for the majority of the American people.

[OzarkDem]

11. Dems are focusing on this issue now

CNN was whining last night about how Dems are "trying to take advantage of high gas prices for political gain". They're repeating the GOP meme that the high prices are due to expensive blends of gasoline demanded by states for environmental protection.

Somehow I don't think the public is going to buy it this time.

[depakid]

12. If the Dems had half the balls of Huey Long

It wouldn't matter what whores like CNN said. The Dems could beat the crap out of the far right with this issue if they'd simply play to win.

[The Wizard]

13. Thus spake The Kingfish

Money is like manure. When you spread it around it makes things grow. When it piles up in one place it starts to stink.