Schumer, Corzine Call for Top-to-Bottom Investigation of Entire Oil Ind.

Press Release of Senator Corzine

In Light of New Survey Showing Shocking Disparity in Gas Prices in NY/NJ, Schumer, Corzine Call for Top-to-Bottom FTC Investigation of Entire Oil Industry

Hurricane Katrina-Related Gas Price Gouging Costing Metro Area Residents Millions, Could Continue Long After Clean up Period without Decisive Action

Senators ask FTC to look at Full Picture, Gas Stations, Big 4 Oil Companies and Pipelines

Monday, September 5, 2005

In light of shocking disparities in gas prices in the New York/New Jersey Metropolitan area, and, as gas prices continue to soar, today Senators Charles E. Schumer and Jon S. Corzine called on the Federal Trade Commission (FTC) to launch a top to bottom investigation into the oil industry. The Senators, who released a survey that showed a huge disparity in gas prices throughout the entire New York and New Jersey Metropolitan area expressed their concern that people could be profiting in the wake of the devastation caused by Hurricane Katrina.

“We are only beginning to comprehend the breadth of what truly is a devastating national tragedy. Hurricane Katrina has destroyed homes, communities, families, and an entire region of this nation. The thought that a few bad apples might profit from this tragedy is unconscionable,” Schumer said.

“This should be a time of shared sacrifice not exploitation,” said Corzine. “The unprecedented damage of hurricane Katrina cannot be compounded by gasoline price gouging, it is our responsibility to see that those who would seek to gain because of a horrible natural disaster are swiftly prosecuted.”

According to AAA, gas prices have, in less than a week, jumped by as much as 60 cents a gallon and on average, gasoline is 50 percent more expensive than it was last year.

If the cost of gas were to stay at $3 a gallon, New Yorkers will spend $3,305,556,000 on gas in the next calendar year versus $2,343,639,204 at September 2004 prices for an increase of $961,916,796 or almost 1 billion dollars. The average vehicle in NYC will cost the owner $548.41 in extra gas prices if they don’t come down.

Schumer and Corzine also released a survey of gas prices in the metropolitan New York and New Jersey Area.

More: http://corzine.senate.gov/press_office/record.cfm?id=245240&