Paul Doyle

Doyle Hails Passage of Plan to Save Money at Pump, Fight Oil Profiteering

Democrats’ plan protects against price gouging, puts a circuit breaker on the gross receipts tax

With the threat of gasoline costing $5 a gallon this summer, State Senator Paul Doyle (D-Wethersfield) joined his colleagues in passing a proposal that will help provide relief at the pump and protect consumers from profiteering and price gouging by big oil wholesalers.

The Democrats’ plan strengthens protections against price gouging, cracks down on oil profiteering, places a circuit breaker on the gross receipts tax, and requires that savings are passed along to consumers. The legislation ensures that if wholesale gas prices rise further this summer, prices at the pump will not go even higher as a result of the gross receipt tax. Senator Doyle brought the legislation out on the Senate floor Wednesday.

“Our plan protects consumers at the pump and makes sure big oil companies do not inflate gas prices to increase their own profits,” Senator Doyle said. “It’s not enough to just cap the gross receipts tax and hope that oil wholesalers do the right thing and pass savings on to consumers. This plan sends a strong message to oil companies that we are watching and won’t stand for price gouging.”

The Democrats’ proposal:

1. Legislatively declares a 30-day period of petroleum market scrutiny by the Department of Energy and Environmental Protection and the Department of Consumer Protection in anticipation of further wholesale price spikes. 
2. Amends the petroleum profiteering statute (C.G.S. § 42-234 et seq.) to provide for investigations of price gouging whenever the wholesale price rises by 15 percent or more within 90 days (the wholesale price has increased 40 cents—more than 15 percent—in the past ninety days).   
3. Grants the commissioner of the Department of Consumer Protection authority to impose Unfair Trade Practice fines on large gasoline wholesalers and distributors who are in violation of profiteering laws.
4. Puts a permanent circuit breaker on the gross receipts tax (GRT) on motor fuels at $3.00/per gallon wholesale, upon passage. 
5. Prohibits oil wholesalers and distributors (those who pay the gross receipts tax) from passing on anything purporting to be based on the tax for the portion of any sales price over $3.00 per gallon. 
6. Institutes similar profiteering protections in regards to home heating oil.