Washington – New York Sen. Charles Schumer wants the government to investigate U.S. oil refiners’ skyrocketing profits, which he said are to blame for high gas prices.
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“Something is rotten,” said the Democrat, speaking Sunday at a gas station on Manhattan’s West Side.
He said refiners’ profits have more than doubled since last year. Meanwhile, the price of unleaded gas went up by almost 12 percent in just the two weeks ending May 6, topping $4 a gallon in New York.
The senator said he believes refiners may be fixing prices by cutting back on stockpiles — by keeping refining capacities to only 81 percent and through exports that diminish domestic availability.
In a letter to the Federal Trade Commission, Schumer demanded an investigation into record profits by major refiners.
The letter is also signed by Senate Majority Leader Harry Reid and three other Democratic senators.
Memorial Day weekend marks the start of the summer drive season, “and it ruins your vacation when you pull up to the pump and spend $80 to fill your tank,” said the senator. “It turns your stomach.”
He said that historically, refiners’ profit margins have been narrow. But in the past year, they’ve shot up.
Schumer said there’s evidence the spike may not be due to a supply-and-demand market dynamic, but that “illegal practices … could be punishing drivers.”
He did not name any companies, but said a probe should examine all of them, including the biggest five: Exxon Mobil, Shell Oil, BP, Chevron and ConocoPhillips.
Last month, President Barack Obama announced his effort to try to root out any manipulation of oil markets, with Attorney General Eric Holder and the Justice Department looking into a variety of reasons that could have spurred gasoline to $4 a gallon
But , they will add the cost of the investigation into the price at the pump. We hear the same talk every few years.
Its state and federal taxes that are driving up the prices too! Companies are allowed to make money- since when is that illegal? The problem is when you look at a gallon of gas and much of the price is tax! Federal tax is at 18.4 cents per gallon (cpg), while the state tax changes depending on where you live.
Lets take New York?31.9 cpg state tax Includes 8 cents per gallon excise tax, Petroleum Business Tax of 15.2 cents per gallon for gasoline. Also a spill tax of 0.3 cent per gallon is collected on gasoline and diesel and a petroleum testing fee of 0.05 cent per gallon is levied on gasoline. This does NOT include an estimated 7.9 cents per gallon for gasoline from weighted county average sales taxes that range from 3.25% to 4.75%.
Pot calling the Kettle black here? the state is making too much money on this and they are driving up the cost of gasoline through the roof!
the government will never investigate too many pols depend on oil donations (campaign contributions)
What happened to the much-vaunted American ideal of capitalism? Or is that Schumer has this compelling urge to behave like a dog: to bark and constantly to attract to attention to himself?
it seems that greenfield and schumer are in competition for proposing ideas or bills.
better that government stay out of most affairs and leave it to we the people.
to # 4 charlie- i see that in your responses you have a pattern: liberalism with other peoples hard earned money.wait till osama-care really kicks in and your spouse has to close the medicare mills-then you will have to work honestly like the rest of us and stop supporting run-away taxes.to paraphrase CHURCHILL,OBM when u-r young and not liberal u do not have a heart,however,when u-r older and not conservavtive u do not have a brain.-get a brain charlie.