To cut gas costs, Democrats to focus on oil company ‘price gouging’

Democratic leaders in both chambers on Thursday took aim at the nation’s largest oil companies, accusing the industry of adopting “price gouging” tactics that have led directly to the spike in gas prices around the country.

Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Charles Schumer (D-N.Y.) vowed to move swiftly in the coming weeks to vote on legislation empowering the government, at both the state and federal level, to put new curbs on the industry for the purpose of reducing costs at the pump.

“They are hoarding the windfall while keeping prices high for people at the pump,” Pelosi said during a press briefing in the Capitol. “In this time of war — in any time — there is no excuse for big oil companies to profiteer, to price-gouge or exploit families.”

The Democrats’ legislation would grant new authority to both the Federal Trade Commission (FTC) and state attorneys general to scrutinize the methods by which fuel prices are set, at both the wholesale and retail level. The new authority would include powers to slap civil penalties on those companies found in violation.

The issue has become an increasing liability for the Democrats, who control the White House and both chambers of Congress, and are scrambling to fend off attacks from Republicans blaming President Biden for the inflationary trend.

Yet Democratic leaders have rejected tax holiday, warning that there’s no way to guarantee the oil companies would pass that savings along to drivers.

“The pros of it are that it’s good PR,” Pelosi said. “The cons are that there’s no guarantee that the savings — the reduction in the federal tax — … would be passed on to the consumer.”

Schumer suggested that leadership’s strategy to focus on the oil companies was poll-tested.

“If the Republicans stand in the way of us feeling the consumer of the stranglehold of Big Oil, you think they’re going to blame that on the Democrats?” she asked.

“When the bills hit the floor,” Schumer added, “the Republicans will face a dilemma.” LINK