Chamber Study Finds "Price-Gouging" Legislation Might Hurt Consumers More Than It Helps

WASHINGTON, D.C.-The United States Chamber of Commerce this week will send a report to Congress that provides hard facts against allegations of gasoline "price gouging," antitrust violations, and consumer exploitation by the oil industry.

"The Chamber recognizes that high gas prices are a problem, but strongly opposes various proposed so-called 'price gouging' laws, attempting to interfere with market conditions," said Bill Kovacs, the Chamber's vice president for environment, technology, and regulatory affairs. "This study proves that consumers seeking out competitive prices best handle spikes in the cost at the pump. History shows us that artificial interference makes the price and supply situation worse - not better."

The study, A Dozen Facts You Should Know About Antitrust and the U.S. Oil Industry, found no credible evidence that oil industry mergers have led to higher consumer prices. It also found: the Federal Trade Commission scrutinizes the petroleum industry more closely than any other - thus effectively singling out one industry for punishment; U.S. oil industry profits are comparable to those of other industries; refiners have expanded domestic and global capacity; the U.S. is operating at or near practical maximum utilization rates despite obstacles that have prevented the construction of new refineries in recent decades; and the market tends to alleviate price spikes efficiently.

The Chamber sponsored the study by Timothy J. Muris and Richard G. Parker - two leading antitrust practitioners - to provide hard facts in the current debate over regulating this vital part of our economy.

"A better understanding of the petroleum industry will prevent legislation which could damage the market's ability to continue providing American consumers with the energy they need," Kovacs concluded.

To read the report, click here.

The U.S. Chamber is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector, and region.