Luther Targets High Gas Prices in Bid for Attorney General

From a campaign Press Release:

Candidate Questions Oil Company Profits, Market Disruption
(ST. PAUL) – With gas prices in Minnesota reaching an all-time high, Minnesota Attorney General candidate Bill Luther served notice that he will not tolerate oil companies gouging Minnesota consumers, farmers and businesses at the pump. The former Congressman called for experienced leadership in tackling this crisis.

“In the first half of this year, oil companies made excessive profits during a time when there was relative stability in market distribution and oil supply,” said Luther. “Oil companies have shown they do not care about the pain Minnesota’s families feel in their pocketbooks. They’ve shown they only care about consolidating power and posting record profits.”

In July, five of the world’s largest oil companies - BP PLC, Chevron Corp., ConocoPhillips, Exxon Mobil Corp. and Royal Dutch Shell PLC - said their combined income in the second quarter was $34.6 billion, up 36 percent from a year earlier.

Luther cited past reports and memos that highlight the decisions of oil companies to lower supply to increase the price of gasoline. An internal 1995 Chevron memo recommended the company reduce refinery capacity to substantially increase profit margins. The 2002 Minnesota Attorney General Office’s report on Minnesota’s Gasoline Market indicated that action can be taken in a number of areas to re-establish competition in order to lower gas prices.

“Minnesotans are tired of waiting for honest answers from oil company executives,” Luther continued. “As attorney general, I will put our families ahead of oil company profits by cracking down on price gouging and breaking up monopolies in the oil industry.”

When President Bush took office, the average price of gasoline was about $1.22 per gallon. Then big oil companies were allowed to regulate the market and the result has been staggering. Minnesota’s families have seen a 175 percent increase in the cost of gasoline in the last six years.

“Minnesotans deserve leadership,” explained Luther.

“They deserve someone who will fight to make sure oil companies are not gouging consumers, farmers, and businesses. They deserve someone who will make sure oil companies are not driving up the price of ethanol at the expense of our rural economy. They deserve someone who will make sure oil refineries are not violating safety and environmental requirements that put our communities and families at risk.”

For eight years, Bill Luther served the people of Anoka, Washington, and Dakota Counties in the U.S. House of Representatives. In addition, he was a prosecutor, private attorney and a state legislator representing northern Hennepin County.