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The keyword is "Caught"!
alledan
Member Posts: 19,541
House OKs Energy Price-Gouging Punishment
By H. JOSEF HEBERT
WASHINGTON (AP) - The House on Wednesday approved criminal penalties and fines of up to $150 million for energy companies caught price gouging, yet lawmakers acknowledged there is no quick and easy fix to higher pump prices.
President Bush summoned Democrats and Republicans to the White House to discuss legislation to address long-term energy concerns.
``The price of gasoline should serve as a wake-up call ... that we've got an energy security problem and a national security problem and now is the time to deal with it in a forceful way,'' Bush said after the meeting.
With bipartisan support, the House approved on a 389-34 vote a measure that would create a price-gouging law and permit large fines and jail time for violators.
The Senate has yet to consider the legislation.
The House did reject a Republican bill that supporters said would make it easier to build refineries in hopes of easing tight gasoline supplies.
All but 13 Democrats opposed the measure, intended to quicken the permitting process. They said it would not bring down gas prices, could lessen environmental protection and usurp local say where refineries go.
Rep. Rick Boucher, D-Va., said the problem was not a delay in permitting.
``The real reason we have a refinery shortage is the companies that own refineries are profiting enormously from the ... refinery bottlenecks,'' he said.
Republicans branded Democrats as obstructionists on energy. The vote, 237-188, fell short of the two-thirds needed to pass under special procedures.
Rep. Joe Barton, R-Texas, a leading supporter of the refinery bill, promised to bring it back, possibly next week, under rules that require a simple majority for approval.
``There is not a panacea of short-term solutions to the (gasoline) price situation today because it's a demand-driven price,'' Barton said. said at a news conference.
He said the government could set price controls or release large amounts of oil from the U.S. emergency reserve. But he opposes both ideas and said they would cause other problems.
Senate Majority Leader Bill Frist's proposal to give people a $100 rebate checks was all but abandoned Wednesday, ridiculed even by members of his own party as insulting and inadequate.
Also seeming to lose steam was a Democratic proposal for a 60-day ``holiday'' from the 18.4-cent per gallon federal tax on gasoline.
``We would like to be able to do something now, quickly. The truth of the matter is we can't,'' Sen. Pete Domenici, chairman of the Senate Energy and Natural Resources Committee, told reporters after the White House meeting.
The price-gouging issue seemed to have the most potential as a congressional show of support for people angered by high gas prices.
Under Rep. Heather Wilson's bill, the Federal Trade Commission and Justice Department would have power over energy price gouging. ``This is something we have to do,'' said Wilson, R-N.M.
During House debate, Rep. Sherwood Boehlert, R-N.Y., said, ``American consumers are demanding protection from price gouging.''
Democrats echoed that sentiment.
``The American people are quite fed up. ... They know gouging when they see it and they're being gouged,'' said Rep. Bart Stupak, D-Mich.
The legislation would direct the FTC to define price gouging. Violators could face penalties of up to $150 million for refiners and other wholesalers and $2 million for retailers. The measure would cover marketers of gasoline, diesel fuel, crude oil and heating fuel.
Wholesalers and retail outlets such as corner gas stations and service station chains could face civil penalties triple the amount of their unfair profit. Violators could go to jail.
Bush said last week he did not think oil companies were engaging in price gouging. He said Wednesday there is a ``need to make sure our consumers are treated fairly - that there is fairness in the marketplace.''
The president, in talks with lawmakers, discussed proposals aimed at increasing and diversifying energy supplies, extending tax credits for the purchase of hybrid cars and encouraging alternative fuels.
``I don't think there were any new proposals that had not been kicked around, tried, talked about before,'' said Domenici, R-N.M.
Also Wednesday, the House Energy and Commerce Committee heard about the administration's request for new rules for auto mileage requirements. Automakers would gain flexibility in meeting per-gallon standards for cars, but overall mileage would not necessarily rise.
Barton, the committee's chairman, said he does not see Congress ordering higher mileage requirements. ``A Draconian increase would be a stake in the heart ... of the auto industry in this country,'' he told reporters.
By H. JOSEF HEBERT
WASHINGTON (AP) - The House on Wednesday approved criminal penalties and fines of up to $150 million for energy companies caught price gouging, yet lawmakers acknowledged there is no quick and easy fix to higher pump prices.
President Bush summoned Democrats and Republicans to the White House to discuss legislation to address long-term energy concerns.
``The price of gasoline should serve as a wake-up call ... that we've got an energy security problem and a national security problem and now is the time to deal with it in a forceful way,'' Bush said after the meeting.
With bipartisan support, the House approved on a 389-34 vote a measure that would create a price-gouging law and permit large fines and jail time for violators.
The Senate has yet to consider the legislation.
The House did reject a Republican bill that supporters said would make it easier to build refineries in hopes of easing tight gasoline supplies.
All but 13 Democrats opposed the measure, intended to quicken the permitting process. They said it would not bring down gas prices, could lessen environmental protection and usurp local say where refineries go.
Rep. Rick Boucher, D-Va., said the problem was not a delay in permitting.
``The real reason we have a refinery shortage is the companies that own refineries are profiting enormously from the ... refinery bottlenecks,'' he said.
Republicans branded Democrats as obstructionists on energy. The vote, 237-188, fell short of the two-thirds needed to pass under special procedures.
Rep. Joe Barton, R-Texas, a leading supporter of the refinery bill, promised to bring it back, possibly next week, under rules that require a simple majority for approval.
``There is not a panacea of short-term solutions to the (gasoline) price situation today because it's a demand-driven price,'' Barton said. said at a news conference.
He said the government could set price controls or release large amounts of oil from the U.S. emergency reserve. But he opposes both ideas and said they would cause other problems.
Senate Majority Leader Bill Frist's proposal to give people a $100 rebate checks was all but abandoned Wednesday, ridiculed even by members of his own party as insulting and inadequate.
Also seeming to lose steam was a Democratic proposal for a 60-day ``holiday'' from the 18.4-cent per gallon federal tax on gasoline.
``We would like to be able to do something now, quickly. The truth of the matter is we can't,'' Sen. Pete Domenici, chairman of the Senate Energy and Natural Resources Committee, told reporters after the White House meeting.
The price-gouging issue seemed to have the most potential as a congressional show of support for people angered by high gas prices.
Under Rep. Heather Wilson's bill, the Federal Trade Commission and Justice Department would have power over energy price gouging. ``This is something we have to do,'' said Wilson, R-N.M.
During House debate, Rep. Sherwood Boehlert, R-N.Y., said, ``American consumers are demanding protection from price gouging.''
Democrats echoed that sentiment.
``The American people are quite fed up. ... They know gouging when they see it and they're being gouged,'' said Rep. Bart Stupak, D-Mich.
The legislation would direct the FTC to define price gouging. Violators could face penalties of up to $150 million for refiners and other wholesalers and $2 million for retailers. The measure would cover marketers of gasoline, diesel fuel, crude oil and heating fuel.
Wholesalers and retail outlets such as corner gas stations and service station chains could face civil penalties triple the amount of their unfair profit. Violators could go to jail.
Bush said last week he did not think oil companies were engaging in price gouging. He said Wednesday there is a ``need to make sure our consumers are treated fairly - that there is fairness in the marketplace.''
The president, in talks with lawmakers, discussed proposals aimed at increasing and diversifying energy supplies, extending tax credits for the purchase of hybrid cars and encouraging alternative fuels.
``I don't think there were any new proposals that had not been kicked around, tried, talked about before,'' said Domenici, R-N.M.
Also Wednesday, the House Energy and Commerce Committee heard about the administration's request for new rules for auto mileage requirements. Automakers would gain flexibility in meeting per-gallon standards for cars, but overall mileage would not necessarily rise.
Barton, the committee's chairman, said he does not see Congress ordering higher mileage requirements. ``A Draconian increase would be a stake in the heart ... of the auto industry in this country,'' he told reporters.
Comments
I saw an interview with the founder of Southwest Airlines recently stating that he is going to build his own refinery to insure that Southwest has sufficient fuel. Im wondering what he has to say about the difficulties involved in building a refinery.
The oil companies who do all the work to supply the market with fuel are making 7-8% profit.
Meanwhile the federal Government who does nothing but get in the way of oil companies takes 18.4 cents per gallon.
Bush said last week he did not think oil companies were engaging in price gouging. He said Wednesday there is a ``need to make sure our consumers are treated fairly - that there is fairness in the marketplace.''
That is a pure Communist statement.
It's not like the oil company CEOs sit down and say "OK, we will now start charging x per gallon of gas", the market determines the price. Any price manipulation would be indirect, by not running refineries near full capacity when it is possible to do so, intentionally delaying maintenance/hurricane repair to keep refineries at reduced capacity, keeping oil/gas parked offshore in barges to deflate the inventory in eyes of traders, etc.
It would be extremely difficult to prove that anyof tehse are intentional.
Politicans are as useless as teats on a boar hog at doing any good for a free market. Keep the government out of our business. If they would stop regulating gas formulas, preventing refinaries from being built and allow drilling some holes in Alaska we would NOT have this problem. Our government IS the problem not only on this issue but on illegal's in this Country. THEY ALL SUCK EGGS.
IF YOU DON"T LIKE THE PRICE OF THE PRODUCT, DON'T BUY IT.
Supply and demand works every time all the time. Proof of is that we don't eat Filet mingon every night for a bed time snack. There is not enough suppy to meet demand. That is why it costs 12 bucks a pound.
QED
Kidding, right?
He'd be a fool to build it in the US - Mexico is their best bet!
very few regs - if any - down there![:D]
I think we still have it good in a way. I saw on TV today that in England they are paying about $7 a gallon, with $4 of that being taxes alone.
That's part of the rationale, the "look how bad the other guy has it" -mentality that they are relying on us to buy.
If I was making 7+ BILLION dollar profits per quarter, $150 million dollar fine would gladly be paid. Besides, only one a huge fine helps is the government, not me or you.
quote:The House on Wednesday approved criminal penalties and fines of up to $150 million for energy companies caught price gouging
Your right, Chump change.