London, 21 June 2011

Chairman John D. (Jay) Rockefeller IV yesterday announced that the Federal Trade Commission (FTC) has agreed to start an investigation into oil and gasoline markets and the impact on the amount Americans are paying for gas. Rockefeller pushed the FTC to probe this issue back in March.

“A strong and vigorous investigation into rising gas prices is appropriate, timely, and essential,” Rockefeller said.

“American families are rebounding from the economic downturn, and we must continue to pursue bad actors who threaten that recovery. That’s why I wrote to the FTC on this issue, and I am pleased that the Commission is now moving forward. The steep increases in gas prices this spring hurt families and put the entire economic recovery at risk. I am not convinced that these price increases were necessary or reflected true market conditions. And the high profits in the oil industry only increase my concerns that the American public is paying more at the pump while the big oil companies are getting richer. FTC appears to be appropriately taking a broad approach to this investigation, looking at practices across the industry. I look forward to the results of the investigation.”

Congress provided the FTC with jurisdiction to investigate and prosecute fraud or deceit in wholesale petroleum markets in the Energy Independence and Security Act of 2007. Although the FTC finalized its anti-manipulation rule implementing the provisions of the Energy Independence and Security Act in August 2009, this investigation is believed to be the first time that the agency has exercised its new enforcement authority in the petroleum markets.

Ends --