Andrew Maynard

Maynard Supports Passage of Plan to Save Money at the Pump, Fight Oil Profiteering

Legislation protects against price gouging, caps the gross receipts tax on wholesale gasoline

As gasoline prices continue to rise and threaten to top $5 a gallon this summer, State Senator Andrew Maynard (D-Stonington) joined his colleagues today in passing a proposal that will cap the gross receipts tax on wholesale gasoline, and protect consumers from profiteering and price gouging by big oil wholesalers.

“This bill is an important, though limited, step in combating the distressing increases in gas prices consumers are paying at the pump. While the bill caps the state wholesale gas tax and empowers the Attorney General to crack down on price gouging, I worry that market speculation and other forces beyond our reach continue to outpace our best efforts,” Senator Maynard said.

The proposal:

1. Legislatively declares an abnormal market period to activate the state’s profiteering statute and make price gouging subject to investigation by the state Department of Consumer Protection.
2. Amends the petroleum profiteering statute (C.G.S. § 42-234 et seq.) to provide for investigations of price gouging whenever the wholesale price of gasoline rises by 15 percent or more within 90 days (the wholesale price has increased 40 cents—more than 15 percent—in the past ninety days).
3. Grants the commissioner of the Department of Consumer Protection authority to impose Unfair Trade Practice fines on large gasoline wholesalers and distributors who are in violation of profiteering laws.
4. Puts a permanent circuit breaker on the gross receipts tax (GRT) on motor fuels at $3.00/per gallon wholesale, upon passage.
5. Prohibits oil wholesalers and distributors (those who pay the gross receipts tax) from passing on anything purporting to be based on the tax for the portion of any sales price over $3.00 per gallon.
6. Institutes similar profiteering protections in regards to home heating oil.