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The Sunoco on Craft Avenue displays gas prices at almost five dollars on Wednesday, June 15, 2022, in Oakland.
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Pa. Democrats push gas tax holiday, strengthening state price gouging laws to help alleviate impact of inflation

Maya Giron/Post-Gazette

Pa. Democrats push gas tax holiday, strengthening state price gouging laws to help alleviate impact of inflation

HARRISBURG — The issue on the minds of all Pennsylvanians when they go to the gas pump or grocery store was on the lips of lawmakers Wednesday in Harrisburg: inflation, and what can be done about it.

Senate Democrats joined in on President Joe Biden’s call for a gas tax holiday at the state level, while House Democrats held a hearing to discuss the details of their long-term proposals to strengthen the state Attorney General’s powers to prosecute major corporations for price gouging.

Pennsylvanians are especially feeling the pain at the pump, because the state has the highest gas tax in the country at 57.6 cents per gallon. California follows with the second-highest gas tax at 51.1 cents, then Washington at 49.4 cents and New Jersey at 42.1 cents. Alaska has the lowest gas tax in the country at 8.95 cents per gallon, followed by Hawaii at 16 cents and New Mexico at 17 cents.

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Sen. Vince Hughes, D-Philadelphia, said during a news conference Wednesday that the state would need to set aside $900 million to pay for a three-month gas tax holiday — money the state has as part of its remaining federal stimulus dollars and increased revenues, Mr. Hughes added.

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“This is about putting people over corporate profit,” said Minority Leader Jay Costa, D-Forest Hills. “We need to implement a gas tax [holiday], use Pennsylvania’s budget surplus to ensure our roads and bridges still receive the funding they need, and hold the oil and gas industry accountable to pass the savings to consumers.”

Democrats pointed to the skyrocketing profits among oil and gas companies as an example of “corporate greed.”

According to an analysis by the liberal-leaning Center for American Progress, five of the nation’s major oil companies brought in more than 300% in profits during the first quarter of 2022 over the previous year. This amounts to $35 billion in additional profits for these companies, as gas prices rise above $5 per gallon in some parts of Pennsylvania.

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The Senate’s top Republican, President Pro Tempore Jake Corman, R-Centre, introduced legislation in March that would cut the state’s gas tax by nearly 20 cents per gallon through the end of the year.

Reps. Sara Innamorato, D-Lawrenceville, and Nick Pisciottano, D-West Mifflin, have been working together for the last 18 months to write a bill to strengthen the state’s anti-trust laws. They picked up this work after the late Sen. Stewart Greenleaf, R-Montgomery, who made a proposal in 2017 during his final term. This is part of a three-bill package House Democrats touted on Wednesday at a separate press conference. Mr. Pisciottano, who is a certified public accountant, has been a lead advocate for the bills.

Mr. Pisciottano also authored a bill to give the state Attorney General the power to investigate and prosecute companies for price-gouging consumers — something the top prosecutor can only do under an emergency declaration. Attorney General Josh Shapiro prosecuted several cases during the COVID-19 emergency declaration of companies inflating prices for personal protective equipment and toilet paper.

“We’re handicapping ourselves because we’re saying, ‘This is important during an emergency,’ but it’s not important any other time,” Mr. Pisciottano said in an interview last week.

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Mr. Pisciottano’s bill also would create a whistleblower program, with protections for whistleblowers and potential compensation for coming forward with reliable information.

While Senate Democrats support a three-month gas tax holiday, House Democrats offered a different proposal: prohibit gas companies from raising prices more than once in a 24-hour period. Five other states have passed similar legislation.

Of the three-bill package, Mr. Pisciottano’s price gouging proposal has received the most support so far. He has two Republican co-sponsors and is working with the House Consumer Affairs committee chair to have a hearing on the bill.

Although top Democrats and Republicans agree that the state should take immediate action to bring down gas prices, they’re not on the same page when it comes to who is causing the record-high inflation.

Earlier this week, House Republicans finished a set of hearings on inflation and cited Democratic policies as part of the cause. Rep. Martin Causer, R-Cameron, who chairs the GOP policy committee, noted that his Democratic colleagues and Gov. Tom Wolf’s administration want to continue spending and feed inflation. Mr. Causer mentioned Mr. Wolf’s proposal to send $2,000 payments to low- and middle-income Pennsylvanians using the state’s remaining federal stimulus dollars as part of his 2022-23 budget proposal.

“Those are all going in the wrong direction in the state at a time when we need to be turning the ship around, making things better,” Mr. Causer said at a hearing on June 14.

Ms. Innamorato said she and Mr. Pisciottano are committed to the “long game” on their anti-trust proposal to help the AG’s office prosecute corporations in the technology or meat processing industries. Lawmakers still need to address the rising costs now, she added.

“We still need a plan to help alleviate the pressures of inflation,” Ms. Innamorato added. “If we say, ‘here’s how we’re trying to make markets more competitive,’ people don’t want to hear that when they’re filling up their gas tanks.”

Gillian McGoldrick: gmcgoldrick@post-gazette.com or on Twitter @gill_mcgoldrick

First Published: June 22, 2022, 11:29 p.m.
Updated: June 23, 2022, 3:39 a.m.

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The Sunoco on Craft Avenue displays gas prices at almost five dollars on Wednesday, June 15, 2022, in Oakland.  (Maya Giron/Post-Gazette)
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