[Congressional Record Volume 151, Number 110 (Wednesday, September 7, 2005)]
[Senate]
[Pages S9716-S9717]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                HURRICANE KATRINA AND SOARING GAS PRICES

  Mr. DAYTON. Mr. President, I also want to join with others of my 
colleagues today who have expressed the concerns, condolences, and 
sympathies to the victims of Hurricane Katrina, which has so horribly 
claimed so many of our fellow Americans' lives, families and friends, 
homes, businesses, farms, schools, and entire communities that are the 
worst victims of this unprecedented disaster. Our hearts go out to all 
of them. Our helping hands are being extended and must continue to be 
extended to them.
  There are millions of other victims of this disaster, Americans 
nationwide whose economic well-being has been harmed by price increases 
and supply or service disruptions.
  In my State of Minnesota, probably the worst economic damage and 
financial hardships have been caused by the skyrocketing prices for 
gasoline and other essential energy supplies. Even before Hurricane 
Katrina, those prices had been increasing sharply. In the 3 months from 
May 28 to August 28 of this year, the average price of regular unleaded 
gasoline throughout Minnesota has risen from $1.92 a gallon to $2.55 a 
gallon. That is an increase of 63 cents a gallon, a one-third increase 
in just 3 months.
  Then, in 3 days last week, from August 29 to September 1, the average 
gasoline prices in Minnesota jumped another 46 cents a gallon, 
according to one Web site that has spot check reports from throughout 
the State. So in 3 months and 3 days, the average gasoline prices, 
according to this Web site, in Minnesota, jumped from $1.92 a gallon to 
$3.01 a gallon, a 57-percent increase. That is not as bad as some other 
parts of the country, but it is sure worse than bad enough for 
Minnesota.
  I know from direct personal experience driving around northern 
Minnesota last week that actual prices were much higher, as high as 
$3.46 a gallon for regular unleaded gasoline, which was up almost $1 a 
gallon from 2 weeks before. Unfortunately, that up-to-date, accurate 
information is not available from the Energy Information Administration 
Web site, and that is one of the defects that needs to be remedied.
  Most of Minnesota's oil and gasoline supplies originate from Canada, 
come in either by gasoline or oil pipelines and then refined within our 
State. So almost all of our price increases for gasoline and other 
energy products were not directly the result of Katrina's supply 
disruptions. Rather, they were the result of other people taking 
advantage of that disaster to take advantage of the people of 
Minnesota.

[[Page S9717]]

  Last week, President Bush called it ``price gouging at the gasoline 
pump,'' and I agree with the President. President Bush also said that 
there should be zero tolerance for gasoline price gouging, similar to 
looting in New Orleans, and I agree with the President on that as well 
because price gouging has the same effect as looting or other kinds of 
stealing. It is robbing the people of Minnesota and elsewhere 
throughout this country by overcharging them for their essential energy 
needs.
  Given the similarity of the gasoline price increases throughout 
Minnesota, I think there is a strong possibility of pricing collusion 
by the major oil suppliers and distributors that demands immediate 
investigation and, where called for, vigorous prosecution of violators. 
What they have done is not only immoral, it is also illegal under 
Federal law.
  I have written the United States Attorney General and urged him to 
back up the President's strong words with his strong immediate action 
to investigate all indications of price gouging and/or pricing 
collusion of gasoline, diesel fuel, aviation fuel, farm fertilizers, 
natural gas, liquid petroleum gas, home heating oil, ethanol, and any 
and all other oil supplies.
  At this time, I urge the President to release whatever supplies are 
necessary from our Nation's Strategic Petroleum Reserves to offset the 
loss of oil, gasoline, and other energy supplies resulting from 
Hurricane Katrina.
  Last night, the Secretary of Energy told a number of us in the 
Senate, in a briefing, that gasoline prices have been stabilized. Well, 
with due respect, Mr. Secretary, I must say they have been stabilized 
far too high in Minnesota, if, in fact, they have been stabilized at 
all. Thus, whatever has been done so far is not enough. Gasoline prices 
are still unaffordably too high in Minnesota. Other energy prices are 
still unaffordably too high, and with the cold weather heating season 
soon upon Minnesotans and other Americans in the United States, it is 
imperative to act now and keep on doing whatever is necessary to get 
energy prices back down to pre-Katrina levels--which were still too 
high--and then deal with that continuing energy price crisis in 
Minnesota and other affected States and continue to do whatever is 
necessary to get those lower prices.

  In the immediate term, we need to strive for lower energy prices, and 
we need executive action to prosecute price gouging, price collusion. 
We also, then, need, as a body of Congress, to do whatever is necessary 
to strengthen Federal legislation to prohibit and prevent this kind of 
economic looting of our fellow citizens.
  A couple of my colleagues have announced, just in the last 2 days, 
their intentions to introduce legislation. Senator Dorgan of North 
Dakota intends to offer windfall profits tax legislation on U.S. oil 
companies and other energy suppliers. Senator Cantwell of Washington 
has indicated her intention to offer legislation that would give the 
President additional powers to mitigate price increases in times of 
crisis.
  I intend to introduce in the next 2 days, as soon as it is complete, 
legislation that would prevent and prosecute price gouging in energy 
and other essential commodities. In a nutshell, this legislation would 
make it illegal in any emergency situation to take advantage of 
consumers by raising energy prices or other essential commodity prices. 
It would give the U.S. Attorney General further authority to prosecute 
retail gasoline stations, oil companies, distributors--whoever is found 
to be in violation of this provision. It would require the Energy 
Information Administration to provide current prices for major 
metropolitan areas for every State and for our entire Nation on a daily 
basis so that we can evaluate those price increases so that citizens 
can know, in perspective, what they are being charged and how it 
compares with other parts of the country. They can then be our eyes and 
ears to report evidence of these rising prices that constitute price 
gouging, as the President said, at the gasoline pump.
  We have witnessed once again, in the midst of this disaster affecting 
Southern United States, that such disasters bring out both the best and 
the worst of human nature. They bring out the best, as we have seen the 
courageous men and women of the National Guard, the medical personnel, 
and many others who are literally risking their own lives to save the 
lives of others. We have seen the best of human nature in the response 
of millions of Americans from all over the country who have contributed 
whatever they can and are offering to do more to alleviate this 
suffering.
  Here in the Senate last week, and also in the House, we provided an 
additional $10.5 billion the President requested to continue emergency 
operations. All of us, including those at a meeting last night with a 
number of the Cabinet Secretaries, were asking the administration, What 
do you need us to do? Money? Authorizing legislation? Streamlining 
existing legislation? Tell us what we need to do in the Senate and 
House to expedite in the best possible ways the relief effort that must 
continue for months ahead.
  This is not a Republican or Democratic disaster or Republican or 
Democratic response. It is an American disaster, and it is a response 
of all of us as Americans to our fellow citizens in need.
  Unfortunately, there is another side to human nature, and that is 
what we must also address. It cannot be allowed. It certainly cannot be 
rewarded with profits to those who take advantage of the despair of 
their fellow citizens. Some cannot be allowed to cause even further 
economic hardship, even devastation, especially to those who can least 
afford the prices of energy essentials and other necessities of life. 
That is where our fellow citizens look to us to stand up on their 
behalf to prevent, prosecute, and to prohibit this kind of economic 
looting that the President called price gouging.
  I support his statement. I urge the U.S. Attorney General to put 
action behind those words, and then I urge my colleagues to join with 
me in passing legislation to prohibit and prevent this from happening 
again and to prosecute those who are responsible for it.
  I yield the floor and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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