Edward Meyer

Meyer Moves 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, Senator Ed Meyer (D-Guilford) 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.

A former federal prosecutor, Senator Meyer said the most important part of the legislation is the provision that fights price gouging.

“The crux of this legislation is that it protects consumers from predatory price gouging,” Senator Meyer said. “It is unacceptable for big oil companies to artificially inflate oil prices to boost their own profits while at the same time burdening consumers with sky-high gas prices.”

Senator Meyer pointed to the 40 cent (15 percent) increase in gas prices in the last 90 days despite oil production within the U.S. being at its highest level in eight years with the largest five oil companies making a record-high profit of $137 billion in 2011.

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.