Legislation that would require the Federal Trade Commission to monitor fuel market anomalies and fine bad actors has been introduced in the Senate.
Sponsored by U.S. Sens. Maria Cantwell (D-WA), Alex Padilla (D-CA) and Ron Wyden (D-OR), the Transportation Fuel Market Transparency Act would create a new Transportation Fuel Monitoring and Enforcement Unit at the FTC that would monitor for fraud and manipulation that may be artificially inflating prices as the gas pump, while increasing transparency in transportation fuel markets and increasing penalties for bad actors. The legislation aims to thwart the practices of past oil traders who have taken advantage of volatility and supply disruptions to profit off of consumers.
“This legislation couldn’t come at a more needed time as drivers in Washington and all across the country face record breaking pump prices,” Cantwell, the ranking member of the Senate Committee on Commerce, Science and Transportation, said. “Protecting American households and businesses requires forcing the same level of transparency in fuel markets that we successfully fought to secure in other energy markets. This legislation will put a full-time policeman on the beat able to shine a bright light on the mysterious middle of gas markets and go after any bad actors that are exploiting consumers.”
The legislation comes as gas prices reach $5.57 per gallon in Washington state, the highest average price ever, and $7 in the Puget Sound area.
The legislation would strengthen oversight into the market, while ensuring dedicated market monitoring and targeting bad actors. Those found guilty of manipulating the wholesale oil market face penalties of $2 million per day for each violation.