Democrats pitch boosting FTC to curb gas price gouging

WASHINGTON (AP) — Citing growing worries about high gasoline prices, Democratic leaders announced an effort Thursday to give the Federal Trade Commission increased authority to crack down on companies that engage in price gouging.

In doing so, they downplayed the possibility of other options such as a federal gas tax holiday or offering oil companies more government incentives to increase production. Instead, they said the FTC needs more tools, including stiffer fines and penalties and a team of dedicated experts to monitor markets and go after price gouging.

With voters concerned about the growing toll of inflation, Democrats again signaled their intention going into November’s midterm elections to place much of the blame for high gas prices on oil companies. Democrats accused oil companies of “ripping off the American people” at a contentious hearing this month with oil industry executives.

“Congress must do more to beef up the FTC’s ability to crack down on potential gas price manipulation and price gouging,” Senate Majority Leader Chuck Schumer, D-N.Y., said Thursday. When the Democratic bills reach the House and Senate floor, "Republicans will face a dilemma: Which side are they on? On the consumer and lowering gas prices? Or on the side of the big oil?” Schumer said.

The average price of a gallon of gas was $4.14 Thursday, according to the AAA auto club, and is markedly higher than that in California and other western states.

Sen. Maria Cantwell, the Democratic chair of the Senate Commerce, Science, and Transportation Committee, said Congress strengthened the Federal Energy Regulatory Commission's authority to investigate and punish energy market manipulation some two decades ago. That was following the Western energy crisis of 2000 to 2001 when Enron and...