Senator Fuschillo Calls For Investigation In Light Of Record Oil Company Profits
Senator Charles J. Fuschillo, Jr. (8th Senate District), Chairman of the Consumer Protection Committee, has called upon the Attorney General of New York state to extend his price gouging investigation of the oil industry. This call comes on the heels of the report from the Exxon/Mobil Corporation that in the previous quarter the company saw record profits.
Exxon/Mobil, the world's largest public oil company, reported that over the last quarter, during which Hurricane Katrina occurred, their revenues topped $100 billion and their profits were just under $10 billion.
"The consumers of this nation have had to deal with dramatically increased energy costs and the excuse has been increased prices for foreign oil and reduced refining capabilities. Now, the truth comes out that the oil companies are reaping massive profits from the energy situation. This is unfair to the consumer and dangerous for our state and our nation," stated Senator Fuschillo. "I am hopeful that the Attorney General will thoroughly investigate the oil companies just as he has looking into price gouging at the retailer level. The proof is in the profits and the time is now."
October 28, 2005
New York State Attorney General Eliot Spitzer
State Capitol Building
Albany, NY 12224
Dear Attorney General Spitzer:
In September, I contacted your office requesting an investigation into possible price gouging in the aftermath of Hurricane Katrina and I appreciate your attention to the matter. However, the recent announcement by the Exxon/Mobil Corporation regarding their record profit of almost $10 billion in the previous three months has given me cause to strongly urge you to investigate the companies who have profited from the recent gas price spike.
These companies earned record profits over the last three months while the average family endures exorbitant prices. These oil companies excused their increases by repeatedly citing rising oil costs and the impact of hurricanes in the Gulf Coast. Now we realize they were just increasing their bottom line.
Consumers who face increased fuel prices must face increased cost for almost every other good and service they use. The fact that consumers have paid more for everything while oil companies have been reaping record profits is appalling. Your office has been diligent in investigating individual cases of price gouging and these profits demand that your efforts be expanded to the source.
I respectfully request that your office continue to protect the New York consumer by launching an investigation into the big oil companies and their big oil profits. The time is now to call these big oil companies on their profiteering and to investigate the possibility of price gouging on a large scale. The proof is in the profit.
Thank you in advance for your prompt attention to this matter.
Senator Charles J. Fuschillo, Jr.
Chairman, Senate Consumer Protection Committee
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