State’s Attorney General Calls For Action On Gasoline Pricing

Attorney General Richard Blumenthal this week said that he wants a joint federal-state strike force to investigate and help curtail skyrocketing gasoline prices. Connecticut’s people’s lawyer met last Monday with US Attorney General Alberto Gonzales and Federal Trade Commission Chairwoman Deborah Majoras, along with other attorneys general, in Washington, D.C.

The meeting of law enforcement officials across the nation concerns potential joint and cooperative action against high gasoline prices.

“In our meeting with top federal officials — the Attorney General of the United States, Alberto Gonzales, and the Federal Trade Commission chairwoman, Deborah Majoras — I urged that there be joint federal-state investigative and prosecutorial action against any illegal oil industry practices that are producing skyrocketing gasoline prices,” Mr Blumenthal said in a statement. “I emphasized the anger and outrage justifiably felt by consumers who face spiraling prices at the pump and obscene, record profits for big oil companies.”

The AG believes federal officials were receptive and encouraging that cooperation and information sharing should be pursued, but additional discussion will be necessary for specific steps together. A new investigation will be undertaken by the FTC, with input from state attorneys general.

“A key focus should be profit levels of refiners and oil companies,” Mr Blumenthal said. “I intend to press for joint action, along with other attorneys general from around the country. Federal authorities agreed to share information with the states, as appropriate. While I welcome information sharing, I am hopeful that it will lead to genuine partnership and joint federal-state action.”

The meeting was also attended by attorneys general from Massachusetts, New Jersey, Oregon, Arizona, North Dakota, and Maryland. Many more were represented by staff. The attorney general and FTC chairman also included their senior staff.

“As a first step, this conversation was encouraging, although the test will be whether there is real information sharing and joint efforts to investigate and prosecute antitrust and price-gouging violations,” Mr Blumenthal observed.

Mr Blumenthal, who has been urging federal legislation and enforcement action for the past six years, said a federal-state enforcement partnership is vital to fight antitrust abuses and price gouging, and hold the industry accountable at every level.

“My goal is to forge a powerful law-enforcement partnership to fight unconscionably high gasoline prices — a joint federal-state task force to investigate and stop monopolistic abuses by big oil,” the state AG said. “I will also urge aggressive law enforcement and new legislation to end manipulation of commodity futures markets, ban zone pricing, halt windfall profits and expand refinery capacity.

Mr Blumenthal said he hopes the message to big oil is that we’re entering a new era of allied, proactive consumer protection.

“While consumers struggle with record high prices for gasoline, the industry is awash in cash — reaping record high profits,” the AG said. “The huge power of big oil can be matched only by federal-state alliance.”