Schumer calls for gas price probe
WASHINGTON -- Warning that New York gas prices could jump to at least $1.90 a gallon by spring, Sen. Charles Schumer on Wednesday renewed his call for the Federal Trade Commission to investigate the possibility of price gouging across the country.
"We are about to go to war and the last thing we need is unnecessarily high gas prices," Schumer said.
New York motorists were paying on average $1.76 a gallon Wednesday compared with $1.22 per gallon on the same date a year ago -- an increase of 44 percent, according to the American Automobile Association. Schumer said experts tell him that gas prices could jump another 10 to 15 cents by April mainly because of crude prices hitting an all-time high of $36 per barrel Tuesday.
The huge jump in gasoline prices, especially the rapid increase in the last month, has alarmed lawmakers and consumer groups. Most of the price spike is attributed to fears of war with Iraq and an oil strike in Venezuela, one of the top four sources of oil exports to the United States. But some lawmakers and consumer advocates, including Schumer and the AAA, don't rule out the possibility of price manipulation at the pump.
Schumer wrote to FTC Chairman Timothy Muris this month, calling for a comprehensive investigation into gas pricing. As of Wednesday, Muris had not replied.