Gas Price Gouging Prevention Act would ban the practice amid “a period of international crisis” like Russia’s war in Ukraine
Right now, federal law only prevents price gouging for a few items — should gas be one of them?
Context
On March 8, President Joe Biden signed an executive order banning the import of Russian oil and gas, in response to the Russian military’s attempted invasion of Ukraine. Three days later, the average U.S. gas price reached a new record $4.33 per gallon, beating the previous record set back in 2008.
Almost all members of Congress across both parties supported Biden’s executive order, which Congress subsequently codified into law through the Ending Importation of Russian Oil Act that passed 100–0 in the Senate and 413–9 in the House.
But while the Russian oil import ban was the immediate cause of record-high prices that specific week, other factors have contributed to high gas prices, both then and since. Inflation across the entire economy reaching a 40-year high. And although oil demand has recovered to pre-pandemic levels, oil production has not, which drives prices up.
Could another factor be gas stations price gouging?
Oil executives say no, and the evidence isn’t definitive. Still, there is no general federal law against price gouging, even though most states ban the practice. There are a few specific federal prohibitions, such as price gouging for items deemed necessary for national security. But in theory, price gouging for gas could be considered legal on a federal level.
“Russia’s aggression is costing us all, and it’s no time for profiteering or price gouging,” President Biden declared in a March speech, though it doesn’t appear he has endorsed any legislation (like this one) to officially ban the practice.
A senator recently publicly requested that the Justice Department establish a “Gasoline Price Gouging Enforcement Task Force,” to officially determine whether this practice is indeed occurring. Now, that same senator is introducing legislation to prevent the practice at all.
What the bill does
The Gas Price Gouging Prevention Act would ban price gouging of gasoline “during a period of an international crisis affecting the oil markets,” for which the current Russia/Ukraine situation would certainly qualify.
That determination would be made by the president, who could apply the law for potentially unlimited periods of 30 days at a time, or up to one week before a “reasonably foreseeable emergency.” The FTC (Federal Trade Commission) would be charged with enforcing the law, leveling fines up to $100 million.
It was introduced in the Senate on March 24 as S. 3920, by Sen. Tammy Duckworth (D-IL).
What supporters say
Supporters argue that whether gasoline price gouging is currently actually occurring or not, existing federal law allows for a loophole that could unnecessarily hurt hundreds of millions.
“The price of gas is unreasonably high and is causing unnecessary financial pain for Americans all across the country,” Sen. Duckworth said in a press release. “I will not allow any corporation to use Putin’s war of choice against Ukraine as an excuse to excessively increase the price of gas. My new bill would help prevent this abuse of power and help working families keep more of their hard-earned dollars.”
What opponents say
Opponents may counter that the bill is a solution in search of a problem.
“I have seen statements in the press suggesting that Chevron and other oil and gas companies are responsible for the increase in fuel prices,” Chevron CEO Michael K. Wirth said in testimony before the House Energy and Commerce Committee’s Subcommittee on Oversight and Investigations. “I want to be absolutely clear: we do not control the market price of crude oil or natural gas, nor of refined products like gasoline and diesel fuel, and we have no tolerance for price gouging.”
Even the progressive publication Mother Jones recently published an article titled, “Blame Big Oil for a Lot — But Not for Price Gouging at the Pump.”
Odds of passage
The bill has attracted two cosponsors, both Democrats. It awaits a potential vote in the Senate Commerce, Science, and Transportation Committee.
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This article was written by GovTrack Insider staff writer Jesse Rifkin.
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