For Immediate Release:
Wednesday, September 7, 2005

WASHINGTON D.C - U.S. Representative Dan Boren announced today he is calling for an investigation into fuel-price gouging in the wake of the hurricane disaster in the Gulf Coast.  In a letter to U.S. Attorney General Alberto Gonzales and Federal Trade Commission Chairwoman Deborah Majoris, Boren and several colleagues expressed concerns that price gouging along the production and supply chain could be driving up fuel costs at gasoline pumps.

 

Boren says industry collusion and price fixing could be contributing to unaffordable fuel costs for many Oklahoma families, and even leading to potential shortages at the pump in hurricane disaster areas.  Boren wants an immediate investigation and expeditious prosecution of any and all offenders.

 

“Prices at the pump remain unstable following the hurricane, even jumping as high as $6 per gallon in some parts of the country.  My first priority is to root out price gouging and protect Oklahomans who are already struggling to meet their basic transportation needs,” Boren said. 

 

“Rising gas prices are also hurting small businesses and gas retailers who are at the mercy of their corporate suppliers,” Boren added.  “If fuel costs continue to rise, the impact to our local economy could be crippling,” Boren said.

 

There is currently no federal law specifically governing price gouging.  Although, some states have price-gouging laws, they are usually triggered only when emergency situations develop.  However, Boren says that since the Federal Trade Commission Act is responsible for outlawing deceptive practices in interstate commerce, the Commission needs to rein in unfair practices from the well head to the gas pump. 

 

Boren also supports making price gouging a federal crime.  He recently cosponsored the Anti-Price Gouging Act, which would make it a violation of antitrust laws for a supplier to charge unconscionable prices for necessary goods or services once a state of emergency has been declared by the President.    

 

“The recent tragedy in the Gulf Coast is another reminder of the importance of preparing and protecting consumers before disaster strikes.  A federal law against price gouging is long overdue to protect Oklahoma’s families and consumers across the nation,” Boren said.

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