Democrats want investigation into gas price fixing

The Huffington Post:

Washington - Keeping the spotlight on the high prices at the pump, Senate Democratic leadership has sent a letter to the Federal Trade Commission requesting an investigation into whether oil companies have been deliberately holding down the supply of refined gasoline.

The letter, spearheaded by Sen. Claire McCaskill (D-MO), is the latest in a line of politically sharp attempts to turn the screws on Big Oil. Last week, the CEOs of the five biggest oil companies came to the Hill to testify before Sen. Max Baucus’ (D-Mont.) Finance Committee. The topics discussed varied, but focused primarily on why or whether oil companies needed generous tax breaks when oil was selling so high.

A Senate vote on eliminating those tax subsidies is expected shortly, perhaps even as soon as Tuesday. The votes will likely fall short of the 60 needed to reach cloture, with several oil-friendly Democrats raising opposition.

In the meantime, the Department of Justice is looking into the possibility of fraud and manipulation in the oil market. Now, the Senate is pressing the FTC to investigate the possibility that U.S. inventories were being kept artificially low in order to maintain high gas prices.

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