Photo by iStock.com/Muhammad Farhad
Gas prices are hitting record highs and we’re all feeling it at the pump and in the rising costs of many other products we use every day. Oil companies are capitalizing on the war and humanitarian crisis in Ukraine to raise prices, and they’re seeing record profits while we pay the price.
In the first quarter of this year, the biggest oil companies raked in billions in profits, and rather than investing that profit in clean energy or lowering prices to ease the burden on consumers, those profits mostly went toward executive bonuses and stock buybacks to enrich their investors.
But now we have critical momentum on Capitol Hill to hold Big Oil accountable for this shameless price gouging. Introduced by Rep. Kim Schrier (D-WA) and Rep. Katie Porter (D-CA), the Consumer Fuel Price Gouging Prevention Act would crack down on oil and gas companies that are price-gouging consumers, empowering the President to make unlawful the unconscionably excessive and exploitative prices for gasoline and home heating fuels. The bill would also empower the Federal Trade Commission to issue penalties on companies that are price gouging. The bill further protects low-income families by allocating the fines collected to a Consumer Relief Trust Fund, which can be used to fund investments in making homes more energy efficient.
Passing the Consumer Fuel Price Gouging Prevention Act is a critical first step in addressing this problem, and Congress should vote to do so as soon as possible. It’s also just one of a suite of actions that Congress and the Biden administration can take to protect our communities and families from Big Oil’s exploitation.
There are also efforts being led by Congressional Democrats to implement a windfall profits tax that returns Big Oil’s runaway profits back to taxpayers. The revenue from such a tax would be used to send a relief check directly to Americans who are struggling with high fuel prices, and could also be invested in energy efficiency programs or other initiatives designed to help low-income families. These efforts could be paired with the repeal of the generous subsidies that the fossil fuel industry continues to collect from the federal government. Despite their skyrocketing profits, the industry remains one of the most heavily subsidized sectors of our entire economy. They are expected to receive $121 billion in tax giveaways over the next decade.
We can also tackle the crisis of high energy prices by stopping fracked gas exports, or LNG exports, which are fueling fossil fuel companies’ windfall profits and driving up the cost of the so-called “natural” gas many Americans rely on for heating, cooking, and electricity.
The US could be to be the world’s largest LNG exporter by the end of 2022, increasingly tying US domestic gas prices to the volatile global market and raising costs for American families. The fossil fuel industry has sought to use the war in Ukraine and subsequent concerns about energy supplies in Europe to justify an even larger expansion of gas export infrastructure. The industry has proposed more than 20 new export facilities, which they hope to build mostly along the already overburdened Gulf Coast with the help of expedited approval and financial support from the federal government.
But the Biden administration shouldn’t fall for this trap. Europe has made it clear that they don’t want to be hooked on US gas in the long term, and expanding fossil fuel export infrastructure now would lock in decades worth of pollution that our climate and communities can’t afford, while continuing to drive up prices. The Biden administration’s Department of Energy should take these concerns seriously, recognize that sky-high gas prices are not in the public interest, and use its authority to ensure that LNG exports do not increase more than they already have.
It’s never been more obvious that the only way to achieve true energy security and independence is to break our dependence on the fossil fuel industry altogether. All of these short-term efforts to address energy prices must be paired with investments in energy efficiency and clean, renewable energy for the long term. We applaud Congressional Democrats for moving critical legislation forward to ease Americans’ energy burden, and we urge Congress and the Biden administration to use every tool at their disposal to protect our families from fossil fuel industry greed.