Show proof gas/gasoline gouging is not happening

www.pantagraph.com Tuesday, March 11, 2003

There should be absolutely no leniency if Central Illinois natural gas or gasoline producers/suppliers/dealers are taking advantage of the threat of a war in Iraq to gouge customers.

And there should be no delay in the Illinois attorney general's office or the Federal Trade Commission to investigate.

Perhaps it is difficult for the public to believe the market is to blame only because that was the ruse used to artificially boost gasoline prices on Sept. 11, 2001. There were 20 companies that wound up making cash settlements in lieu of criminal proceedings by then-Illinois Attorney General Jim Ryan's office over that deal.

Because gasoline price gouging was proven then, it lends credence to beliefs that price gouging may be happening now -- albeit at a much-reduced level than was seen 1 1/2 years ago. The average price of gasoline in the Twin Cities has been hovering at $1.70 per gallon. Back then, gasoline in the Bloomington-Normal area topped $2 per gallon. In the western part of Illinois, gasoline was selling for up to $4 per gallon.

We haven't heard a major roar yet over natural gas bills in Central Illinois, but news releases from the suppliers warning of price hikes usually precede the sticker shock. And the news has gone out in recent days. The companies selling directly to consumers are heavily regulated on what they can charge, but not their producers.

U.S. Rep. Ray LaHood, R-Peoria, has joined a growing number of legislators and attorneys general asking the FTC to investigate. LaHood has been careful not to accuse anyone of taking advantage of war-talk to price gouge. But he is a wily politician who knows that when his constituents begin complaining about the high price of gasoline, he needs to show that he is listening and responding.

Unfortunately, the FTC has done nothing but issue stern warnings when this issue has surfaced in the past, so we don't expect different results this time. Instead of wading into the fray, Illinois Attorney General Lisa Madigan's office is yielding to the FTC. We're not surprised.

We're not sure the public would fully accept the results of an investigation that said the price increases are legitimate because of low crude oil reserves; the problems with the government in Venezuela, which is a major producer of U.S. crude oil; and the threat of war in the Mideast, the major source of crude oil throughout the world.

However, the reasons may be legitimate this time around. The public needs reassurance if that is the case.

Even if Madigan's office and the FTC investigate, the findings will take months. If it goes as usual, prices will have dropped by then and the clamor of the public for some scalps will fade away. The damage to family finances, especially the low income and those on fixed income, will have been done. Politicians will have done their job by asking for help.

We would love to see the FTC and Madigan's office prove us wrong with some quick, thorough investigations.