New Study Finds Oil Company Profiteering Behind Gasoline Price Spikes

[LostinVA]

Santa Monica, CA --- A study released by the Foundation for Taxpayer and Consumer Rights California (FTCR) today found oil company profiteering and the government's failure to respond to it are the cause of recent gasoline price spikes in California. Click here to read the report.

The study by petroleum industry analyst Tim Hamilton showed, for example, that from January 17th to April 18th 2005 gasoline prices jumped 65 cents per gallon and refiner profits rose by 61 cents per gallon. The extra four cents went to the state in increased sales tax collection. The study concluded that California's percentage sales tax provides an economic incentive for government officials to promote high prices at the pump because they result in greater tax collection -- an estimated $1 billion more in California during 2005 due to the price gouging. The consumer group recommends a "windfall profits rebate" be instituted.

"Oil company profiteering, not increased production costs, is the cause of the price spikes at the gasoline pump and Californians deserve their money back," said FTCR president Jamie Court, who served with Hamilton on the California Attorney General Gasoline Pricing Task Force. "Hurricane Katrina will only increase the probability of profiteering and should be a wakeup call to legislators."

"The continued failure of public officials to compel refiners to create more refining capacity and increase inventories will result in gasoline prices rising to $4 per gallon relatively soon," stated Hamilton. "The system is rigged for price spikes and the refiners know it."


More here:

http://www.consumerwatchdog.org/energy/pr/?postId=5084

[Lindsay]

1. I think this falls under the heading of

"no shit, Sherlock."

Like we needed some consumer group to do a study to tell us this.

Thanks, Mr. Bush, for your free market economy.

[drdtroit]

2. Gee, what a fucking surprise!

Is everyone in power in this effing country 13 years old???????

[leftylady]

4. Yea, What a shockeroo!

Has this country always been this corrupt and I just missed it? Or is this a new thing.

[drdtroit]

6. This administration has redefined racism and greed.

IMPEACHMENT - DEN HAGUE!

[davsand]

3. Everybody worried about the looters in NOLA should talk to big oil.

Seems to me the worst looters by far are the oil companies profiteering on this entire mess. Can we shoot THEM on sight too?



Laura

[Just Me]

5. "The system is rigged for price spikes,..."

But, hey, I thought it was the extraordinary increase in demand or the inability to refine or some such bullshit like that.

When we discovered RECORD PROFITS, we were pretty certain of our belief that we are getting screwed. Why aren't we being protected from such predatory exploitation? Oh, yeah, the oil-profiteers run the country. :eyes:

[meow2u3]

7. Repukes in Congress enable the oil company profiteers

They won't lift a finger to investigate the price gouging of American gasoline consumers, just like they did in 2001, during the first wave of runaway gas price hikes (before Jeffords went independent). The Repukes just turn their heads the other way while the oil robber barons fleece Americans out of their hard-earned money.


When the Dems controlled the Senate, they looked into the first wave of oil profiteering and immediately, gas prices went down from about $1.75/gallon to $1.35 a gallon.

These gas prices have everything to do with Republican hatred for the poor.

[wli]

8. yep, total Enronization n/t