- Published: Tuesday, March 27, 2012 11:14 PM
Senator Martin Sandoval released the following statement this afternoon:
Gas prices are out of control! According to AAA Fuel Gauge Report, Chicago metropolitan gas prices set an all-time record this month with an average price of $4.51 a gallon for regular unleaded gasoline. Analysts suggest that $5/gallon gas prices this summer are within reach.
A significant reason for these sky-high gas prices is because banks are driving up the price of oil from speculation and financial trading. Up to a third of the price of oil is not due to supply and demand, but rather to speculators buying options on millions of barrels of oil, hoarding it and driving up the price for their own greedy profits.
This is unacceptable. I call on the Obama Administration to clamp down on this reckless oil speculation. The Commodity Futures Trading Commission has the power and the obligation to stop this oil speculation. Under the 2010 Dodd-Frank law, the Commission is required to clamp down on oil speculation to lower gas prices by setting strict position limits on traders. These position limits would restrict how much a single trader, like Goldman Sachs, can control the oil market. Strict limits would increase competition, bringing prices down.
The Commission has not exercised its power to date. It is long past time for the Obama Administration to act and clamp down on oil prices. Haven't we learned the lesson from 2008 and 2009 when virtually unregulated big banks led this country into a recession? Isn't it time we stood up to Wall Street and the monied interests to protect consumers?
I call on the five Commissioners of the Commodity Futures Trading Commission to finally exercise their authority to implement strong trading limits on Wall Street oil speculators and stand with the people who have suffered enough from record-high gas prices.
Illinois drivers should not pay more at the pump to make banks richer for their speculation on the price of oil. On behalf of Illinois consumers and the entire transportation industry, I call on the Commission to set very strong position limits on oil traders this month, as we cannot afford these high gas prices any longer.
Senator Martin Sandoval is the Chairman of the Illinois State Senate Transportation Committee.