At a time when rising gas prices are once again making headlines around the world, President Obama, the Justice Department and the Energy Department have announced measures to keep an eye on oil companies.
An Oil and Gas Price Fraud Working Group has been tasked to ensure consumers aren’t victims of price gouging. Their official task is to determine if there is proof of illegal manipulation, collusion, fraud and/or misrepresentation.
Attorney General Eric Holder says the initiative is a way to respond to the anger of the population. He stresses, however, that the creation of the task force in no way confirms that the major oil companies are acting illegally at this time.
Admittedly, this is a smart political move. President Obama’s popularity is plummeting while the American economy is struggling to right itself, pushing the President to formulate a plan to counter the budgetary deficit and the country’s debt, including the elimination of the four billion dollar annual subsidies to oil companies.
Government officials will no doubt debate the measures in the coming months to establish if such a manoeuvre would have a negative impact on the economy and job market.
Not many can confirm if President Obama is scrambling to boost his popularity in light of the upcoming elections in 2012, or if the task force will be able to complete its investigation without being influenced by the powerful oil lobby.
Currently, gas prices have well exceeded the psychological barrier of $4-a-gallon, even rising above 2008’s all-time high.
Sources : CNN, Cyberpresse
An Oil and Gas Price Fraud Working Group has been tasked to ensure consumers aren’t victims of price gouging. Their official task is to determine if there is proof of illegal manipulation, collusion, fraud and/or misrepresentation.
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Attorney General Eric Holder says the initiative is a way to respond to the anger of the population. He stresses, however, that the creation of the task force in no way confirms that the major oil companies are acting illegally at this time.
Admittedly, this is a smart political move. President Obama’s popularity is plummeting while the American economy is struggling to right itself, pushing the President to formulate a plan to counter the budgetary deficit and the country’s debt, including the elimination of the four billion dollar annual subsidies to oil companies.
Government officials will no doubt debate the measures in the coming months to establish if such a manoeuvre would have a negative impact on the economy and job market.
Not many can confirm if President Obama is scrambling to boost his popularity in light of the upcoming elections in 2012, or if the task force will be able to complete its investigation without being influenced by the powerful oil lobby.
Currently, gas prices have well exceeded the psychological barrier of $4-a-gallon, even rising above 2008’s all-time high.
Sources : CNN, Cyberpresse