Underwood-Backed Legislation to Lower Costs for Working Families and Crack Down on Price Gouging by Big Oil Companies Passes the House
WASHINGTON — Congresswoman Lauren Underwood (IL-14) voted to pass the Consumer Fuel Price Gouging Prevention Act, which provides relief to American families by fighting to end price gouging, a deliberate move by Big Oil companies to keep production low and their prices — and profits — high, causing pain at the pump for families across the country.
"At a time when so many families are feeling pain at the pump,greedy oil and gas companies must be held accountable for exploiting them," said Underwood. "Families deserve relief, which is why I support this crucial legislation to lower everyday costs for families and stop Big Oil executives from padding the pockets of their executives and shareholders."
As gas prices increased significantly in 2021, the largest oil and gas companies made a combined $205 billion in record profits. They have continued to profit off consumers in 2022. Recently, the seven largest oil and gas companies announced stock buyback programs that could total up to $41 billion this year alone, and during their testimony before the Energy and Commerce Committee last month, six Big Oil CEOs refused to scale back buybacks to help lower prices at the pump. The average price of gas reached a new high on May 10, hitting $4.37 per gallon for regular gas.
The Consumer Fuel Price Gouging Prevention Act would give the President the power to issue an "energy emergency declaration" to prevent companies from increasing gasoline and home energy fuel prices in an excessive or exploitative manner. The legislation also increases penalties against corporations that manipulate the market and brings more transparency to the secretive oil and gas market.
The legislation would also:
· Give the Federal Trade Commission (FTC) the power to issue penalties to fuel wholesalers and retailers that price gouge.
· Prioritize enforcement 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 to a Consumer Relief Trust Fund, which can be used for the Low-Income Home Energy Assistance Program and the Weatherization Assistance Program to help further lower costs for consumers.
· Protect independently owned gas stations from taking the blame for price gouging.
· Strengthen government oversight by enhancing the FTC's authority to go after false market information designed to artificially inflate prices.
Underwood has worked extensively to lower costs and fight inflation. In March, she introduced the Stop Gas Price Gouging Tax and Rebate Act, which would provide a monthly advanced tax credit to American families experiencing financial strain because of rising gas prices. Learn more about her work to lower costs and fight inflation here.
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