Continuing her campaign to challenge U.S. Sen. Marco Rubio, R-Fla., U.S. Rep.Val Demings, D-Fla., is calling for a congressional subcommittee to take action on high gas prices.
Last week, Demings urged the U.S. House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law (ACAL) to hold a hearing on the matter and she doubled down on that this week as the conflict between Russia and Ukraine continues to escalate.
“I grew up the daughter of a maid and janitor and affordable gas was critical for my family. Floridians need lower gas prices. Russia’s invasion of Ukraine will cause major harm to Florida families at the pump. But even before the invasion, the largest oil and gas companies made hundreds of billions in profits last year, pocketing those gains with stock buybacks. We need to hold international producers and big corporations responsible as they continue to see massive profits while families struggle to make ends meet,” Demings said on Tuesday.
“There are several actions we can take right now to protect consumers from Russian market disruptions and profit-driven price hikes. The administration should restrict gasoline exports out of the U.S., and we should move forward with additional financial assistance to families. Additionally, the House Judiciary ACAL Committee should hold a hearing at the soonest opportunity so we can crack down on anticompetitive practices and potentially illegal price manipulations and work to bring down prices for families at the pump,” she added.
Demings has also called on the Biden administration to release gas from the Strategic Petroleum Reserve. She also wrote U.S. Rep. David Cicilline, D-RI, the chairman of the subcommittee on the matter.
Rubio’s team fired back as Elizabeth Gregory, a spokeswoman for his campaign, weighed in on Wednesday.
“As Americans reckon with record gas prices due to #Bidenflation, a reminder that Val Demings has a history of wanting Floridians to dish out more of their hard-earned money at the gas pump,” Gregory noted. “Demings, who is endorsed by a far-left Green New Deal PAC, voted for a $10.25 per barrel tax as part of the Congressional Progressive Caucus’ budget.
“Higher gas prices didn’t appear out of thin air, and Floridians are paying for Demings’ and Washington Democrats’ poor leadership every time they drive their cars,” she added.
Demings’ letter is below.
Dear Chairman Cicilline:
Thank you for holding last month’s hearing on grocery prices and the effects of economic concentration on America’s food supply. It was important to shed a light on the rising prices for consumers due to consolidation in the agricultural and grocery markets. As I pointed out in the hearing, in addition to the increased pressure on Florida consumers, consolidation in these markets places tremendous strain on Florida’s farmers—and by extension, Florida’s economy—and makes it very difficult for independent groceries to compete and provide food to underserved communities. Florida’s families deserve answers and action to address consolidation in these markets and rising prices.
Unfortunately, the agricultural and grocery markets are not the only ones where we have seen the dangerous effects of consolidation, anticompetitive conduct and the corresponding increase in prices for American consumers. I am extremely concerned that anticompetitive practices, including potentially illegal conduct, is contributing to rising gas prices here in Florida and across the country. As such, I respectfully request that the Subcommittee on Antitrust, Commercial and Administrative Law follow up on our important hearing on grocery prices with an additional hearing on the effects of anticompetitive practices in the oil, gas, and energy markets. Families deserve answers regarding the impacts of consolidation of oil and gas companies and the market practices of dominant firms in the retail oil and gas market.
On August 11, 2021, Brian Deese, the Director of the National Economic Council (NEC) sent a letter to Lina Khan, the Chair of the Federal Trade Commission (FTC), asking the FTC “consider using all of its available tools to monitor the U.S. gasoline market and address any illegal conduct that might be contributing to price increases for consumers at the pump.” The letter specifically pointed to the “asymmetrical phenomenon in oil and gas markets in which gas prices tend to rise more quickly to adjust to spikes in oil prices that they fall when the price of oil declines.”
On August 25, 2021, Chair Khan responded to Director Deese’s letter stating the FTC would take three specific actions to address the concerns raised in his letter. First, the FTC will take a closer look at the merger and divestiture process to ensure that the current structure is not encouraging further consolidation or illegal exercise of market power, including abuse by dominant players to buy up family-run businesses. Second, the FTC will take steps to deter unlawful mergers in the oil and gas industry, specifically imposing “prior approval” requirements to deter illegal merger proposals. Third, the FTC will investigate abuses in the franchise market that could result in higher gas prices being imposed by national chains at the expense of local franchisees.
On November 17, 2021, President Biden followed up with a letter to Chair Khan highlighting the “evidence of anti-consumer behavior by oil and gas companies.” It asked the FTC to increase efforts to examine anti-consumer trends in the oil and gas markets and bring all of its tools to bear to uncover any wrongdoing. Congress must support these efforts to bring relief to families at the pump.
Florida families are rightfully concerned with high gas costs brought on by the current state of the oil and gas markets. Every day, consumers experience the pain of higher gas prices which seem totally unconnected to any real-world justification. It is important that the Subcommittee on Antitrust, Commercial and Administrative Law continue our vital work to bring light to anti-competitive practices that are extracting record corporate profits at the expense of the American consumer. Therefore, I respectfully request the Subcommittee hold a hearing on this matter at the earliest possible convenience.
Thank you for your leadership of the Subcommittee and your time and attention to this matter.
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