Rep. Garamendi Leads Members of Congress Demanding Investigations into Price Gouging by Oil Companies

WASHINGTON, DC—Today, Congressman Garamendi (D-CA03) led 32 of his Congressional colleagues in calling for Congressional actions, investigations, and public hearings into alleged price gouging by oil companies:

"We urge you to direct the Congressional committees of jurisdiction to begin immediate investigations and hold public hearings on alleged price gouging within the oil and gas industry. As American families across the country face increasing prices at the pump, we believe this should be a top priority for the House and Senate for the remainder of the year," Garamendi stated in the letter.

"We are deeply concerned by potential price gouging of retail consumers within the domestic oil and gas industry, reflected in unsubstantiated price increases at the pump. Americans are currently experiencing the highest national average price per gallon of gasoline since July 2008. In California, the average price is now more than $5 per gallon," Garamendi continued in the letter.

"As American families work to make ends meet, Congress must take action to investigate reports of illegal profiteering, anti-competitive business practices, and price gouging within the oil and gas industry and hold public hearings, as appropriate. We stand ready to support any such action with the committees of jurisdiction. Thank you for your leadership and consideration," Garamendi concluded.

A copy of the letter can be viewed below:

Dear Speaker Pelosi and Leaders Schumer, McConnell, and McCarthy:

We urge you to direct the Congressional committees of jurisdiction to begin immediate investigations and hold public hearings on alleged price gouging within the oil and gas industry. As American families across the country face increasing prices at the pump, we believe this should be a top priority for the House and Senate for the remainder of the year.

We are pleased the House passed the "Suspending Energy Imports from Russia Act" (H.R.6968) to ban imports of Russian petroleum products into the United States. According to the federal Energy Information Administration, Russian exports accounted for 7 percent of total U.S. petroleum imports in 2020, ranking third behind Canada and Mexico and tied with Saudi Arabia.i At the same time, the United States also became a net petroleum exporter for the first time since at least 1949. In 2017, the United States became a net exporter of natural gas for the first time since the late 1950s.ii As such, oil and gas sourced from the Russian Federation, other hostile foreign nations, and rogue regimes have no place in the American marketplace.

However, we are deeply concerned by potential price gouging of retail consumers within the domestic oil and gas industry, reflected in unsubstantiated price increases at the pump. According to the American Automobile Association (AAA), the average price nationally for regular gasoline has increased from $2.768 this time last year to more than $4 per gallon currently.iii This is the highest national average price per gallon of gasoline since July 2008. In California, the average price is now more than $5 per gallon.

According to one recent analysis, the 24 largest players in the oil and gas industry earned a record $174 billion in profits in just the first three corporate earnings quarters of 2021.iv At the same time, the so-called "supermajor" oil and gas companies reportedly scaled back investments in research, development, and capital improvements, instead focusing on share buybacks, dividend increases, and bonuses for senior corporate executives. These actions all predate the Russian Federation's invasion of Ukraine by several months.

As American families work to make ends meet, Congress must take action to investigate reports of illegal profiteering, anticompetitive business practices, and price gouging within the oil and gas industry and hold public hearings, as appropriate. We stand ready to support any such action with the committees of jurisdiction. Thank you for your leadership and consideration.

Sincerely,

John Garamendi Member of Congress

Sharice L. Davids Member of Congress

Kim Schrier, M.D. Member of Congress

Sheila Cherfilus-McCormick Member of Congress

Chris Pappas Member of Congress

Earl Blumenauer Member of Congress

Susie Lee Member of Congress

Jahana Hayes Member of Congress

Lauren Underwood Member of Congress

Haley M. Stevens Member of Congress

Mikie Sherrill Member of Congress

Steven Horsford Member of Congress

Julia Brownley Member of Congress

Norma J. Torres Member of Congress

Steve Cohen Member of Congress

Emanuel Cleaver, II Member of Congress

Peter Welch Member of Congress

Bonnie Watson Coleman Member of Congress

André Carson Member of Congress

David N. Cicilline Member of Congress

Cheri Bustos Member of Congress

Marilyn Strickland Member of Congress

Adriano Espaillat Member of Congress

Karen Bass Member of Congress

Marcy Kaptur Member of Congress

Dwight Evans Member of Congress

Kathy Manning Member of Congress

Doris Matsui Member of Congress

Barbara Lee Member of Congress

Madeleine Dean Member of Congress

Deborah K. Ross Member of Congress

Mark DeSaulnier Member of Congress