Renzi Calls on Federal Trade Commission to Open Investigation as Gas Prices Exceed $3 Per Gallon

WASHINGTON, D.C. - Congressman Rick Renzi (AZ-1) called on the Federal Trade Commission to open an investigation as gas prices exceed $3 per gallon. The text of Congressman Renzi's letter to the FTC: April 18, 2006 The Honorable Deborah Platt Majoras Chairman Federal Trade Commission 600 Pennsylvania Avenue, N.W. Washington, D.C. 20580 Dear Chairman Majoras, As you know, in November 2005, Congress passed the Science, State, Justice, Commerce, and Related Agencies Appropriations Act, 2006 (P.L. 109-108), which mandated that the Federal Trade Commission conduct an investigation on the causes of raising gasoline prices in the aftermath of Hurricane Katrina. While I am fully supportive of this federal probe to investigate price-gouging, the profits of oil companies in 2004-2005, and the impact of high gasoline prices on the nation's economy and on consumers, I respectfully request that this investigation be expanded to include an investigation of recent gasoline price hikes in 2006. Throughout the country, including my home state of Arizona, gasoline prices have, or are expected to soon exceed $3 per gallon. While consumers are forced to pay record high prices for gasoline and other petroleum based products, oil companies are reporting record profits. For instance, Exxon Mobil reported a 43 percent profit increase in 2005 to $36.1billion, the highest profit ever achieved by a U.S. based company. Additionally, the Chairman of Exxon Mobil recently received a $357 million retirement package, in addition to a salary of $49 million last year, apparently as a reward for his company's record profit levels. I am concerned that price-gouging and violations of antitrust statutes may be a cause of rising gasoline prices. I urge your investigation to closely examine the root causes of gasoline price inflation, and if applicable, bring action against those in violation of federal law. Sincerely, Rick Renzi United States Congressman First District of Arizona