On the 10th of May, 2007 Kentucky Atty General (Greg Stumbo) filed suit against Marathon Petroleum Company and it's subsidiary Speedway/SuperAmerica, alleging that they have overcharged motorists purchasing fuel in Kentucky by more than $89 Million Dollars in violation of the states 'Consumer Protection Act' following hurricanes Katrina & Rita in 2005. (See: Commonwealth of Kentucky, Ex Rel Gregory Stumbo, Atty General v. Marathon Petroleum Co. , LLC. et. al. Case No. 07-C1-00751, Franklin Circuit Ct. Division 11)
Following an 18 month long extensive investigation, Mr. Stumbo uncovered, "...evidence of massive overcharging of gasoline...by the Defendants as Marathon Oil Co. reported in January 2006 that, refining, marketing and transportation rose from $398 Million Dollars for the 4th Qtr. 2004 to $1.166 Billion Dollars for the 4th Qtr. 2005...the increase was primarily due to a higher refining and wholesale marketing margin realized in the 3rd Qtr. due to the impact that hurricanes Katrina and Rita had on refined product margins..."
While Americans are paying ever increasing fuel costs, between 2001-2006 the Top 5 Oil Companies have recorded profits in excess of $342 Billion Dollars and no oil company is turning any of those massive profits into consumer savings.
Rep. Bernie Sanders (I-VT) has written, "...these record breaking prices have a devastating impact on millions of Americans who are struggling to make ends meet. Senior citizens and lower income individuals...will lose a significant part of their pay checks if we do not stop price gouging by Big Oil...the time is long over due for Congress to take real action that will lower prices at the pump..."
Hold the phone! Tax collection on the production and import of gasoline by federal and state governments are at record levels and government has collected more than $1.34 Trillion Dollars in taxes during the last 30 years from motorists.
For all the hype by 'Members of Congress' one has to really wonder how really serious the Democratic Majority is about taking any form of significant legislative action to help the American consumer? Rep. Dennis Kucinich (D-OH) who is likewise running for President will be hosting Congressional Sub-Committee Hearings starting June 07, 2007 on gasoline concerns.
As American motorists are getting squeezed at the pump by oil companies and paying massive sums to both federal and state tax coffers, it has been reported in the 'LA Times' (Not Just Inflated Prices but Inflated Fuel--May 09, 2007) "...as fuel expands when temperatures rise...gasoline station nozzles don't adjust for this change and motorists and truckers end up with less energy...motorists could be losing 3 cents of every gallon...with drivers in the State of California using almost 16 Billion gallons of fuel a year...could be costing them nearly $480 Million Dollars annually..." in additional costs.
The U.S. Govt. defines a gallon of gasoline: "At 60 degrees a gallon is 231 cubic inches." When fuel is warmer than 60 degrees the liquid which motorists are paying for expands when it is cooler it contracts.
Gasoline expands or contracts 1% for every 15 degrees change in fuel temperatures (Diesel volume changes 0.6%) According to the Natl. Institute of Standards and Technology.
Oil companies that are reporting record profits could fix this problem by installing equipment that recalculates volumes based upon fuel temperatures but this would of course cut into their profit margins.
As the price of a fuel edges closer to $4.00 a gallon, consumers must demand that they are receiving all of the gasoline that they are actually purchasing.
Oil companies have realized 'Rigging Production' by restricting supplies, that they can continue to realize higher and higher profits as the American consumer has no other choice but to pay the ever increasing price at the pump.
According to the 'Congressional Quarterly' Energy Political Action Committees (PAC's) have already donated in 2007 $1,118.686.00 to the "Pan Handlers" of the Democratic Party and $1,290,036.00 to the Republican Party.
Likewise Clarence Cazalot, CEO of 'Marathon Petroleum Co.' has donated $5,000.00 to the Democratic Senatorial Committee in 2006; $8,500.00 to Sen. Mary Landrieu, (D-LA) between 2002-2004 and has made political donations of $104,334.00 in total to both Democrats and Republican "Pan Handlers" during the last 10 years.
A little more than $100,000.00 is a small price to pay to political coffers when the rewards are so lucrative.
