The oil industry should be regulated more

The House Judiciary Committee met today to discuss ‘Retail Gas Prices’ and the effects it has on consumers. The Competition Policy and Antitrust Laws Task Force Subcommittee led the hearing, which discussed the future of diesel fuel and it’s effects on small businesses as well as consumers. Many of the witnesses suggested drilling for oil in ANWR, the Arctic National Wildlife Refuge, and turning the oil market from an oligarchy to a competitive market.

We regulate onions more than we do oil, said Dr. Mark Cooper, director of research of the Consumer Federation of American today. The oil industry is not a competitive market and thus is under the jurisdiction of the antitrust task force. Cooper stressed the necessity to not ignore the traditional problem of the market structure. Since the market is working like a “cartel”, drilling in the United States whether in ANWR or creating more refineries will not influence the world price of oil. Cooper said it is necessary to change the market and make it more competitive, which will in turn lower gas prices.

Small business petrol and convenience stores are also suffering with the high costs of gasoline. Convenience stories earn profit not from gas, but from the food inside, however with gas prices so high, many consumers are driving farther to get cheaper gas. This is putting thousands of hard working American families at risk, said Bill Douglas, chief executive officer of Douglass distributing company.

David Owen, president of the National Association of small trucking companies, described the hardships smaller trucking companies are going through with the high diesel fuel costs. Small business truckers, which started more as grassroots organizations or family run businesses, cannot stop running or go on strike. If they do either of these things, then they will go out of business, Owen said.