clarinews@clarinet.com (TRACEY WEBB) (02/10/90)
WASHINGTON (UPI) -- Five senators from the Northeast and Midwest proposed legislation Friday aimed at heading off a repeat of the surge in home heating oil prices that occurred last December. In an effort to prevent price gouging, the bill would make it a criminal offense create knowingly a fuel shortage for the purpose of increasing oil prices, and it also seeks extra money to help poor Americans pay heating bills. The proposal was put together by Sens. Joseph Lieberman, D-Conn., and Carl Levin, D-Mich., and also sponsored by Sens. William Cohen, R-Maine, Herbert Kohl, D-Wis., and Claiborne Pell, D-R.I. Oil industry officials have said the year-end price hikes were the obvious result of increased demand for heating oil during the coldest December on record. Adding to upward price pressures, they argued, was an explosion at a large Baton Rouge, La., refinery and some oil tankers' inability to navigate frozen waterways. But during House and Senate hearings last month, members of Congress and consumer activists accused oil companies of manipulating supplies in order to jack up prices and called for a federal investigation into possible price gouging. ``Under this (proposed legislation), the attorney general would not have to prove collusion or conspiracy among companies,'' Levin said Friday. ``The act of one company individual or company would be enough.'' The Justice Department said it has begun reviewing oil company records concerning price increases and also is awaiting the results of a review by the Energy Department. Lieberman said 25 senators have sent a letter to Attorney General Dick Thornburgh urging a rigorous investigation into alleged price gouging. ``Our response here today is to try and encourage, push the Justice Department to pursue a very aggressive investigation, not just to wait for information to come to them,'' he said. Other provisions of the bill include an emergency supplemental appropriation of $300 million to the Low Income Home Energy Assistance Program, which President Bush has proposed cutting by 25 percent in his new budget. It also would require the Energy Department to notify states when petroleum inventories fall below certain levels, and orders the Commodities Futures Trading Commission to look into heating oil prices. Lieberman said the Senate leadership has not given commitments to passage of the $300 million request, but it has received ``some sympatheic responses.'' ``We know that there will be a supplemental appropriations bill that will come along this fiscal year, and we hope and are committed to working to make sure that part of it adds more money to LIHEAP,'' Lieberman said. Cohen said he expects the administration to oppose the supplemental request. ``Nonetheless,'' he said, ``I think that by raising this issue at least we can call upon the administration to come up with some other alternative.''