September 29, 2005
Senate Democrats are demanding an investigation into allegations that the worlds largest oil company has artificially pushed up the price of gasoline in the wake of hurricanes Katrina and Rita.
They list accusations from gas station owners that ExxonMobil ordered operators to raise prices at the pump.
The owners add a unique and compelling voice to the debate, given that their own businesses depend on access to supply from this company, the senators said in a statement.
The Democrats also want an investigation of the Federal Trade Commission, a federal agency charged with protecting consumers.
California Democrat Barbara Boxer says the FTC has done so little about gas prices that FTC now stands for "Fail the Consumer.
The American Automobile Association (AAA) for the MidAtlantic reported on Sept 9 that some "disgruntled" gasoline station owners found themselves in a dilemma because of alleged pressure from ExxonMobil.
Many economists and oil industry analysts have questioned why gasoline prices have increased faster than the world price of crude oil.
In Washington, the American Petroleum Institute flatly rejects the charges and says gasoline prices are the result of market forces and limited refining capacity in the United States following two big hurricanes.
According to AAA, the average price of a gallon of regular unleaded gasoline peaked at $3.04 on Sept. 7 after Hurricane Katrina. This week, the national average for a gallon was $2.81, up from about $2.75 before Hurricane Rita.
