Lowest Gas Prices Bill said to cut the price of Oil

Lowest Gas Prices Bill said to cut the price of Oil

Bill said to cut the price of oil by better regulating the energy market, will assist people in their search for lowest gas prices

Discussions have taken place recently over a bill that seeks to better regulate the multi-billion dollar energy derivatives market. If approved by Congress, the bill could result in motorists feeling less pain at the pump, the airport and in their homes during winter months.

That report showed 2008 gasoline supplies are abundant relative to 2007, yet the price for gas has skyrocketed.
The bill’s primary sponsor, U.S. Rep. Bart Stupak, D-Michigan, previously said the bill, if approved, would reduce the price of crude oil by as much as $30 a barrel. He said estimates are that a gallon of gas drops 19 cents for every $10 decrease in the price of a barrel of oil.

It is reported that Oil companies made large profits last year, including $40 billion reported by Exxon Mobil. The five largest oil companies operating in the United States reported combined earnings of $36 billion in the first quarter of this year.

The bill, HR 594, is known as the Prevent Unfair Manipulation of Prices (PUMP) Act. It would require oil and gas companies to play by the same rules as other industries and would close the “Enron Loophole” that was included in the Commodity Futures Modernization Act of 2000. The loophole allowed energy commodities such as crude oil, gasoline, and natural gas to play by their own rules and be traded outside of the New York Mercantile Exchange without any oversight by the Commodity Futures Trading Commission.

A hearing on the proposed legislation is scheduled in the Oversight and Investigations Subcommittee for the House Energy and Commerce Committee on June 23.

In certain district in northeast and central Pennsylvania, gas is over $4 a gallon, and this is impacting all industries, from family farmers to trucking companies.

These industries are playing by their own rules resulting in the general public being forced to pay over $4 for a gallon of gas. Gas prices are soaring and there is no accountability from the market or from the government.

According to AAA, the average price in the Wilkes-Barre area Thursday for a gallon of gas is $3.95, though there are at least five stations in Luzerne County charging more than $4 for the lowest octane. The price of a barrel of sweet crude oil rose $5 Thursday to nearly $128. In the last year, crude oil prices have doubled, climbing 36 percent since Jan. 1 and about 15 percent since May 1 forcing people to search for the lowest gas prices in the area so avoid the most inflated prices

By regulating the industry, consumers could see cheaper gas and home heating fuel prices and airlines will pay less for jet fuel, allowing them to potentially lower ticket prices.

The legislation would also increase penalties for speculators found to be unfairly manipulating the oil futures market thus not creating the lowest gas prices. The bill would double the penalties for market manipulation, to up to $1 million or triple the monetary gain in penalties, or prison time of up to 10 years.

This bill is good news for the average punter who is just a pawn in the game of the oil industry. If this will lower gas prices then the American public will be happy.

Of course if you were like me then you wouldn’t be so concerned about rising fuel prices. I work for Its Good Business and have a secure financial future. How about you?

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