[Congressional Record Volume 151, Number 72 (Thursday, May 26, 2005)]
[Senate]
[Pages S6038-S6039]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 1146. A bill to require the Federal Trade Commission to monitor 
and investigate gasoline prices under certain circumstances; to the 
Committee on Commerce, Science, and Transportation.
  Mrs. BOXER. Mr. President, in March 2000, I introduced legislation to 
deal with the high price of gasoline. At the time, the price of 
gasoline had reached a startlingly high $2.15 per gallon in California. 
Today, gasoline prices on average in California are $2.43 per gallon, 
13 percent higher. The problem is getting worse, not better, and so 
today I am reintroducing my bill to control the manipulation of 
gasoline prices.
  We have heard that higher gasoline prices are due solely to higher 
crude oil prices. I just do not buy it.
  According to the U.S. Energy Information Administration, from January 
17 through April 11, the cost of crude oil rose 10.8 percent. During 
the same time period, the average retail price of gasoline in the 
United States rose 24.9 percent. Something is not right.
  Look at the profits that are being pocketed by the big oil companies. 
Compared to the same time last year, oil companies' first-quarter 
profits are dramatically higher.
  Look at the number of mergers and acquisitions in the industry over 
the past several months. The continued consolidation only reduces 
competition and increases energy costs.
  Look at the refiners that may be taking plants off-line at will for 
``routine

[[Page S6039]]

maintenance,'' which is reminiscent of the electricity crisis when 
generators took their plants off-line for ``routine maintenance'' in 
order to artificially increase prices.
  My legislation will shed light on manipulation and hopefully curtail 
it.
  The bill requires the Federal Trade Commission to automatically 
investigate the gasoline market for manipulation anytime average 
gasoline prices increase in any State by 20 percent in a period of 3 
months or less and remain at that level for 7 days or more.
  Market manipulation would include, but it is not limited to, 
collusion or the creation of artificial shortages such as unnecessarily 
taking refineries off-line. In determining the trigger, the gasoline 
price used would be the Energy Information Agency's weekly pricing of 
regular grade gasoline. A report on the FTC's investigation would be 
due to Congress 14 days after the price trigger.
  Under the bill, the FTC would be required within 2 weeks of issuing 
the report to hold a public meeting to discuss the findings. If the 
finings indicate that there is market manipulation, then the FTC would 
work with the State's attorney general to determine the penalties.
  If the findings indicate that there is no market manipulation, then 
the U.S. Department of Energy must officially decide, within 2 weeks, 
the Strategic Petroleum Reserve should be used in order to ease prices 
and stabilize supply.
  We need to deter market manipulation. Otherwise, we risk serious 
price gouging with no accountability to consumers. My legislation 
offers a reasonable standard for an investigation and a reasonable time 
frame in which to complete that investigation. I believe the threat of 
these investigations and the public light that would be shed on the 
system will keep gasoline prices down.
  I urge my colleagues to cosponsor this bill.
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