As gas prices continue to rise throughout the country, Democrats in Congress said on Thursday that they plan to fight back against the oil and gas companies by penalizing them for price gouging, according to The Washington Post.
There are even some Democrats who have gone as far as saying that 18-cent-per-gallon federal gas tax should be suspended, while others would like to see the new bills be adopted before thousands of Americans travel for Memorial Day Weekend.
Inflation has caused gas prices to skyrocket over the last year, as the national average for gas is now $4.14 per gallon as of April 28, with the highest prices in the country belonging to California and their average price of $5.685 per gallon, according to AAA.
Gas prices are slightly down from last month, when the national average was $4.246 per gallon of regular gas.
However, the national average for regular gas was $2.885 at this time in 2021. The Consumer Price Index summary showed that the gasoline index has risen 48% for the 12-month period ending in March, according to the U.S. Bureau of Labor Statistics.
The congressional Democratic leaders plan to fight inflation and gas prices by having the Federal Trade Commission look into price-setting practices by major gas and oil companies.
"There’s no excuse for big oil companies to profiteer, to price gouge or exploit families," House Speaker Nancy Pelosi (D-Calif.) said.
Pelosi went on to add that there is "no guarantee that the reduction in the federal tax would be passed on to the consumer," but the idea of a federal gas tax holiday is "good PR."
A handful of gas and oil companies like BP, ExxonMobil, and Shell have had huge profit increases in the past two financial quarters, as the Democratic leaders claim that they "have manipulated markets to pad their bottom lines."
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The chief authors of the bill, Sen. Maria Cantwell (D-Wash.) and Rep. Frank Pallone Jr. (D-N.J.), aim at having federal regulators take action against these companies and punish them through fines for their manipulation of gas prices. They said that the oil and gas companies are "ripping off the American people."
"We want to do everything we can to make sure we’re protecting them," Cantwell said.
White House press secretary Jen Psaki said on Wednesday that President Joe Biden is "open to a range of options, including a federal gas tax holiday."
Rep. Sean Patrick Maloney (D-N.Y.), the chief of the Democratic Congressional Campaign Committee, added that there is an understanding that voters want gas and oil companies to be held responsible.
"I think you’ll see us take a number of steps to address gas prices. I think the biggest consensus right now that we’re hearing from voters is the need to hold Big Oil companies accountable," Maloney said. "You’ll see action in that regard."
Other Democratic leaders have expressed their uncertainty that a federal gas tax holiday would be the right move.
"We want to provide people relief at the gas pump. We don’t want to provide a windfall for the oil companies," Rep. Jim McGovern (D-Mass.) said after the meeting.
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