Congress calls for investigations of price gouging

WASHINGTON -- In a sign of growing political anxiety over high gasoline prices, members of Congress on Tuesday issued a bipartisan call for authorities to investigate more aggressively whether there has been price gouging.

Returning from their summer recess, lawmakers held the first of what is expected to be a spate of hearings on record-high gas prices and introduced a raft of legislation.

One bill would temporarily suspend the federal gasoline tax. Another would empower the president to temporarily freeze gas prices at or below levels before Hurricane Katrina struck.

Few of the measures are expected to be enacted. But lawmakers were eager to show they are concerned about the soaring price at the pump.

When Congress recessed more than five weeks ago, lawmakers returned home to trumpet their accomplishments, including passage of an energy bill. But many quickly received an earful from constituents about record-high gas prices.

The issue took on greater urgency after Hurricane Katrina damaged Gulf Coast oil rigs and refineries, driving gas prices up to more than $3 a gallon around the United States.

Sen. Jon Corzine, D-N.J., who is running for governor in his state, said he has rarely heard as many public complaints "as I have been over the last three or four days out on the stump with regard to gas prices."

The Senate Energy and Natural Resources Committee hearing was held as the U.S. average gasoline price slipped Tuesday to $3.041 for a gallon of self-serve regular, down from the record of $3.057 a gallon set Monday, according to AAA. Motorists in all but 17 states were paying more than $3 a gallon, on average, for regular gas, the AAA service station survey found.

But federal officials told the committee they expect gasoline prices to begin to decline in the coming weeks and average about $2.60 per gallon later this year and $2.40 for 2006. But they also projected that heating oil prices, with normal weather, would be much higher, averaging about 30 percent more than last winter.

Congressional Republican leaders said the hurricane focused new attention on the need to increase refinery capacity. Sen. Pete Domenici, R-N.M., chairman of the Senate energy committee, said the natural disaster "exposed the harsh reality that we have been skating on thin ice when it comes to the concentration of energy infrastructure and production on the Gulf Coast."

The proposal to temporarily suspend the 18.4-cent-per-gallon federal gasoline tax has increasing support among Republicans . But the measure likely would face stiff opposition because it would reduce funding for politically popular highway projects.

Byron Dorgan, D-N.D., said, "Most likely, Congress will do little or nothing or talk a great deal and hold hearings." Another hearing on gas prices is scheduled Wednesday before the House Energy and Commerce Committee.

The high fuel costs also have revived debate over whether Congress should substantially increase vehicle fuel-economy standards and allow states to opt out of a long-standing moratorium on new offshore oil and gas drilling.

"Is it possible the anger of the American consumer is misdirected at those who produce it instead of those who deny production?" Sen. Larry Craig, R-Idaho, asked, referring to the ban on new drilling in most U.S. coastal waters.

Domenici called on Congress to take another look at increasing miles-per-gallon rules for SUVs and other vehicles. But efforts to impose tougher fuel-economy standards have been resisted by Republicans wary of government regulations. And Democrats from auto-producing states have opposed new rules, contending they would lead to lighter and less-safe vehicles and cost auto industry jobs.

Supporters of opening a portion of Alaska's Arctic National Wildlife Refuge to oil and gas drilling are expected to seize on the high gas prices to try to win final congressional approval for the long-debated initiative. But Arctic drilling opponents have argued that it would take years to tap the oil beneath the tundra and contend that proponents have exaggerated the amount of oil beneath the tundra.