US Congress set to battle over gas-price 'gouging'
The Senate and House make a controversial move to control alleged profiteering.
By Peter Grier | Staff writer of The Christian Science Monitorfrom the June 20, 2007 edition
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Washington - – Oil-price gouging – specifically, whether the US needs a new federal law that would prohibit such profiteering – has emerged as one of the most controversial aspects of the energy legislation the Senate is considering this week.
Many Democrats think price gouging should be a federal crime. They've included a provision in the energy bill that would make it illegal to reap "excessive" profits at the pump in times of a national energy emergency.
But the White House says the proposed new law is so vague that it's unenforceable – and that antigouging efforts are really backdoor price controls. President Bush will veto the broad energy bill if it contains the provision, according to administration officials.
"The federal government has all the legal tools necessary to address price gouging," said the White House last week in a statement on the issue.
Price gouging has long been a hot topic in Congress when prices at the pump spiral up. The latest push for a new US law dealing with the subject began in 2005, after hurricane Katrina was followed by sharp gas-price increases all across America.
The Democratic takeover of Congress allowed longtime proponents of the measures, such as Sen. Maria Cantwell (D) of Washington and Rep. Bart Stupak (D) of Michigan, to finally push them for consideration on their respective legislative floors.
The House passed a stand-alone price-gouging protection act in May. It directs the Federal Trade Commission and the Justice Department to pursue complaints of profiteering or any activity that indicates an oil seller "is taking unfair advantage" of unusual market conditions.
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