MN Senate targets gas gouging

05/13/2006

The Senate on Thursday approved legislation to make gas gouging a crime.

ST. PAUL, MN (AP)—Sen. Steve Murphy, DFL-Red Wing, said public outrage over high gas prices makes it a good time to move against gasoline wholesalers and retailers who sell at a price that grossly exceeds their costs.

“This has got to stop,” Murphy said.

The Senate approved the measure 36-26, as an amendment to its transportation omnibus bill. Republicans criticized it, saying it would infringe on the free market.

“What we’re doing here is we’re setting price controls,” said Sen. David Hann, R-Eden Prairie.

Murphy said he didn’t think that criminalizing gas gouging, which a number of states already do, would have significant effect on high gas prices. But he said if more states make similar moves, it might pressure the federal government to take greater action against oil companies that he said are profiting from the pain of consumers.

Republicans in the House of Representatives have taken a different tack, proposing a six-month suspension of the 20-cents-per-gallon state gas tax.

— Associated Press