[Congressional Record Volume 152, Number 58 (Friday, May 12, 2006)]
[Extensions of Remarks]
[Page E823]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    THE TRUTH ABOUT HIGH GAS PRICES

                                 ______
                                 

                          HON. JEB HENSARLING

                                of texas

                    in the house of representatives

                         Thursday, May 11, 2006

  Mr. HENSARLING. Mr. Speaker, on May 3, 2006, the House of 
Representatives voted on legislation, H.R. 5253, to federally prohibit 
price gouging in the sale of gasoline, diesel, home heating oil, and 
biofuels. While I am committed to working with my colleagues to enact 
energy policies that will lower gas prices and help out American 
families, I do not believe that this legislation will help.
  I voted against this legislation because I believe it irresponsible 
to criminalize an action without defining exactly what we would be 
criminalizing. As my constituents in East Texas would say, this 
legislation simply does not pass the smell test. Not only does this 
legislation criminalize an action without defining the crime, but it 
passes off that responsibility to unelected bureaucrats at the Federal 
Trade Commission. Thus, this legislation could effectively criminalize 
profit making by companies according to some artificial and arbitrary 
definition determined by bureaucrats in Washington--and that's not the 
American way.
  Additionally, at a November 9, 2005, joint hearing of the Senate 
Energy and Natural Resources Committee and Senate Commerce, Science, 
and Transportation Committee, Federal Trade Commissioner Deborah Platt 
Majoras testified that federal price gouging laws would unnecessarily 
hurt consumers, instead emphasizing that enforcement of our current 
antitrust laws is the best method by which to protect American 
consumers. I find it interesting that not even the Federal Trade 
Commission believes that federal price gouging laws are an effective 
protection for consumers.
  While I believe that price gouging may exist in limited 
circumstances, such as the immediate aftermath of a hurricane where 
market forces have broken down, I have seen no evidence that we are 
experiencing high gas prices because of price gouging. Instead, I 
believe that the following factors are responsible for high gasoline 
prices: (1) A huge increase in worldwide demand, especially in China 
and India; (2) Supply uncertainty and political instability from large 
producers like Iran, Venezuela and Nigeria; (3) Over-reliance on the 
Gulf Coast region; (4) Environmental concerns limiting domestic 
production and refining; (5) Failure of new technologies to yet mature. 
Only through increasing our domestic production and reducing excessive 
federal regulations will we create conditions for lower gasoline prices 
in the future.
  In the face of high gas prices, Congress must not pass knee-jerk 
reaction legislation that will only worsen the problem in the future. 
We owe it to our constituents to pass solid, sensible legislation that 
will promote American energy independence in the future and address 
this issue in the long term. Ultimately, I did not believe this bill 
would do anything to lower gas prices for my constituents.

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