Senator Grassley Supported Bill Would Authorize Government to Sue OPEC for Price Fixing

On Monday, Senator Chuck Grassley (R-IA), Chairman of the Senate Judiciary Committee, introduced bipartisan legislation that will let the federal government take action against price fixing by OPEC, the Organization of Petroleum Exporting Countries. Senators Amy Klobuchar (D-MN), Mike Lee (R-UT) and Patrick Leahy (D-VT) cosponsored the legislation against OPEC, a 15-member organization that accounts for 73 percent of the world’s crude oil reserves.

“Open competition in international oil markets is critical to ensuring that American families pay fair prices at the pump. But under current law, the Justice Department is powerless to stop OPEC and its members from coordinating oil production to manipulate prices and supply, driving up fuel costs for millions of American consumers. Our bipartisan legislation would allow U.S. antitrust laws to be enforced against OPEC producers, helping to ensure that U.S. gas prices are fair and affordable,” Klobuchar said.

“In another time of rising gas prices, it is vital to American consumers and our economy that we do all we can to make sure that oil prices are not artificially inflated. High oil prices have a particular impact in rural states like Vermont, whether it is home heating oil, fuel for tractors or just driving to work. I have long supported this legislation because it will bring accountability to the types of collusive behavior that spike the cost of gas at the pump. I hope this is finally the Congress where these critical reforms can be enacted into law,” Leahy said.

The No Oil Producing and Exporting Cartels Act, or NOPEC, would explicitly authorize the Justice Department to bring lawsuits against oil cartel members for antitrust violations. It would clarify that neither sovereign immunity nor the “Act of State” doctrine prevents a court from ruling on antitrust charges brought against foreign governments for engaging in illegal pricing, production and distribution of petroleum products.