[StBernard] Oil, gas industry objects to bill

[Westley Annis]

Oil, gas industry objects to bill
Ana Radelat 
Gannett News Service 

WASHINGTON - Just before Americans took to the roads in expected record
numbers for the Memorial Day weekend, the Democratic Congress moved to rein
in gasoline prices in a way that has the oil industry fuming.

"Government intervention in the marketplace has never worked," said Jeff
Eshelman, spokesman for the Independent Petroleum Association of America.
   
Over the oil industry's objections, the House this week approved legislation
that would punish oil companies whose gas stations sell fuel "that grossly
exceeds the average price." 

The bill was approved 284-141 Wednesday, largely along party lines, with the
help of Reps. Charlie Melancon, D-Napoleonville, and William Jefferson,
D-New Orleans. Most Republicans, including all five GOP members of the
Louisiana House delegation, did not support it.
The legislation directs the Federal Trade Commission and Justice Department
to punish oil companies, traders or gas stations that take "unfair
advantage" or charge "unconscionably excessive" prices for gasoline and
other fuels. For the first time, it would create a federal law making price
gouging - of natural gas, heating oil and gasoline - illegal.

Money from fines collected from those found to be gouging would go to help
fund a federal program that helps the poor pay heating and air conditioning
bills.

The bill also would make it easier for consumers to sue oil companies over
gouging issues.

But Eshelman said there have been several congressional probes into price
gouging, especially after Hurricane Katrina forced the shutdown of
production and refineries on the Gulf Coast, resulting in shortages and
price spikes.

"And there's never been any evidence of collusion," Eshelman said.

To attract the support of oil state Democrats like Jefferson and Melancon,
Rep. Bart Stupak, D-Mich., the price gouging bill's sponsor, softened his
original bill so its provisions would only apply after the president
declared an energy emergency.

Walter Boasso, a Democratic candidate for governor, already has made the
gouging bill a campaign issue, slamming Rep. Bobby Jindal of Metairie, his
Republican rival, for voting against the bill.

"While gas prices are at an all-time high, oil companies are raking in
record profits," Boasso said. "When Bobby Jindal had a chance to bring
relief to Louisiana families at the pump, he instead sided with the oil
companies and voted to protect their profits."

But Trey Williams, Jindal's press secretary, said there is a good reason
five of seven Louisiana lawmakers rejected the bill.

"It is faulty legislation and could be very harmful to Louisiana, reduce
gasoline supplies and raise prices even more," Williams said

Williams also said Louisiana is one of 29 states that have state
price-gouging laws. He said the bill approved in Congress this week "would
only add a federal layer of bureaucracy" to Louisiana's price-gouging law
and "open many Louisiana citizens and businesses up to frivolous lawsuits."

There's a similar bill in the Senate, sponsored by Sen. Maria Cantwell, a
Washington state Democrat.

The nationwide average price of gasoline is more than $3.20 a gallon,
reaching the all-time, inflation-adjusted record high set in March 1981,
according to the American Automobile Association. However, the
administration disputes the way AAA factored for inflation and said prices
won't reach an all-time high until they exceed $3.90 a gallon.