"The protected price-fixing and oil production fixing that OPEC engages in is totally unacceptable," Grassley said. "Iowa has been suffering from inordinate gas prices long enough because of OPEC's practices."
The proposed legislation would authorize the Department of Justice and the Federal Trade Commission to bring lawsuits against oil cartel members for antitrust violations. It would clarify that what's known as the "Act of State" doctrine would not prevent a court from ruling on antitrust charges brought against these foreign governments for engaging in illegal pricing, production and distribution of petroleum products.
Earlier this month, OPEC-producing countries cut production by 1 million barrels a day, a move that certainly could lead to increased gasoline prices for Iowa's consumers this summer. The Iowa Department of Natural Resources has indicated that gas prices could reach $2.00 per gallon this summer.
In addition to challenging OPEC pricing, Grassley said today that the suggestion of even higher gas prices underscores the importance of increasing the use of ethanol.
"With a looming energy crisis and OPEC's stranglehold on the U.S. economy due to our unhealthy and expensive dependence on foreign sources of oil, we must continue to expand the use of renewable, domestically produced fuels like ethanol," Grassley said.
Approximately one gallon of ethanol displaces two gallons of imported oil.
Grassley is an original co-sponsor of the No Oil Producing and Exporting Cartels Act, or NOPEC, that was introduced by Sens. Mike DeWine of Ohio and Herb Kohl of Wisconsin on Friday.