Rep. Susie Lee Votes to Lower Gas Prices and Hold Big Oil Corporations Accountable

WASHINGTON – Today, Rep. Susie Lee voted to pass the Consumer Fuel Price Gouging Prevention Act to lower gas prices for consumers and hold Big Oil corporations accountable for price gouging and market manipulation. The passage of this legislation follows Rep. Lee's letter urging House Leadership to investigate price gouging, and a hearing with six Big Oil executives with the House Energy and Commerce Committee.

"While American's are struggling every day with rising prices at the pump, Big Oil corporations are choosing profits over people," said Rep. Lee. "The math just doesn't add up. Big Oil companies made $71 billion in profits last year. They're sitting on over 9,000 untapped public leases. Then they turn around and charge consumers record prices at the pump to fill their pockets. It's clear that these companies have the means to increase production, lower your prices, and do the right thing for this country, especially as we struggle with the pandemic and the war in Ukraine. With the passage of this legislation, we're holding Big Oil accountable by demanding transparency and putting an end to the price gouging."

In the months since Russia invaded Ukraine, Putin's Price Hike has inflicted higher costs on working families, both at the pump and through the rising cost of consumer goods and commercial transportation. While Nevadans feel the pinch in their pocketbooks, oil and gas companies are pocketing Putin's Price Hike by deliberately keeping production low and ensuring prices remain sky high. Oil executives have openly bragged about prioritizing shareholder payouts over lower costs for families. While more than 9,000 drilling permits go unused, the seven largest oil companies have announced stock buybacks that could total $41 billion this year alone.

The Consumer Fuel Price Gouging Prevention Act will enable the President to issue an Energy Emergency Proclamation banning excessively high gas and home energy prices. This legislation will also empower the Federal Trade Commission to prevent market manipulation, punish bad actors and collect penalties to support the Consumer Relief Trust Fund. These actions have widespread support, with recent polling finding that an overwhelming 87 percent of Americans want Congress to crack down on price gouging by oil companies.

The legislation, which would be the first-ever federal law against price gouging, would:

• Grant the president the power to declare an ‘energy emergency proclamation
• Make it illegal to sell consumer fuels (car fuel, aviation fuel, and home heating oil and liquid propane) at an excessive and exploitative price during an energy emergency
• Give the Federal Trade Commission (FTC) the power to issue penalties to fuel wholesalers and retailers for price gouging
• Prioritize enforcement action to large companies with total sales of over $500 million per year
• Give all states the power to go after price gougers at the retail level
• Direct penalties collected to a Consumer Relief Trust Fund, which can be used for the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program (WAP) to help further lower costs for consumers; and
• Protect independently owned gas stations from taking the blame for price gouging at wholesale or increased costs throughout the supply chain since they have no control over these costs

The legislation also increases penalties against market manipulators and improves transparency into a market fraught with secrecy. Specifically, it would:

• Strengthen government oversight by enhancing the FTC's authority to go after false market information designed to artificially inflate prices
• Double the maximum penalty for manipulating wholesale oil markets to up to $2 million a day for each violation
• Improve market transparency and competition by directing the Energy Information Administration to collect and publish information related to the quantity and pricing of transportation fuels to facilitate transparency, fair competition, and compliance with relevant international sanctions

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