Stop making excuses for greedy gas and oil companies
World markets were pricing in war before the first shot was fired, but Putin’s invasion of Ukraine on February 24 still turned the market for gas and oil upside down. The shock to the system was swift and gas prices went soaring. Days later, I called for a temporary suspension of the federal and New Jersey state gas taxes while continuing contributions to the trust funds for road improvements and transportation projects.
Prices have risen further, driven by a combination of Putin’s atrocious war, market speculation, renewed supply chain disruptions due to COVID, and corporate greed. Witnessing the pain of New Jersey families losing hard-earned wages at the pump, I introduced the Government Oversight of Unpatriotic Greed in Energy (GOUGE) Act, which would help address high prices for hardworking drivers through a three-part plan: suspending the state and federal gas taxes, applying a windfall profits tax to oil companies who are prioritizing high profits in a time of global instability, and directing the Federal Trade Commission (FTC) to fine corporations found guilty of gouging hardworking Americans.
The double threat of having a windfall profits tax and being fined by the FTC for price gouging strongly discourages corporate greed. By aggressively taxing their additional profits, Congress can send a powerful message to gas and oil companies: if you’re going to jack up prices on consumers during times of financial uncertainty, don’t expect to pocket all that extra cash while the rest of us are hurting.
Right now, oil and gas CEOs and their wealthy stockholders are laughing all the way to the bank. Shell, for example, just reported its highest profits since 2008, thanks to the high cost of oil. Shell’s CEO celebrated it as a “momentous year.” For me and families across New Jersey, when costs go up, our household budget gets tighter. Shell and others say they’re increasing prices in response to the increasing cost of crude oil – but then brag about making record profits. They’re playing us for fools, and the GOUGE Act would put a stop to that.
Additionally, allowing the FTC to go after and fine companies for price gouging at a time of rampant market speculation and war would provide a long-term deterrent to taking advantage of energy emergencies. Americans don’t trust oil and gas companies. When the American people were put in a bad spot due to rising energy costs driven by war and profiteering, U.S. oil companies didn’t do the patriotic thing and keep prices stable. They looked out for themselves and made record profits. The ability of the FTC to levy large fines would discourage bad behavior by oil and gas companies even after the current price spike ends.
If these corporations can’t figure out a way to make a living without price gouging consumers, then it's time to hold them accountable. If they refuse to pass the savings that would be created by my GOUGE Act on to the consumer, they can expect to have their excessive profits taxed and to be fined for their greed. I’ve had enough with the excuses, shallow slogans, and giving corporate giants a pass at the expense of everyone else. Congress can take steps to discourage corporate greed – and that’s what I’m trying to do by introducing the GOUGE Act.
U.S. Rep. Donald Norcross
This article originally appeared on Cherry Hill Courier-Post: Stop making excuses for greedy gas and oil companies
