NEWS: As Gas and Diesel Prices Spike, Sen. Schiff Introduces Legislation to Levy an Excess Profits Tax on Big Oil Companies to Discourage Price Gouging

Los Angeles, CA - Today, U.S. Senator Adam Schiff (D-Calif.) introduced legislation to levy an excess profits tax on big oil companies to discourage price gouging and ensure oil companies aren't profiting off of prolonged war and oil market instability. Schiff's legislation comes as Americans are facing sky-high prices at the gas pump and Big Oil companies are projected to rake in $96 billion in profits in 2026, $13.5 billion more than last year.

"After half a year of war, it's clear who has benefited from rising gas prices: Big Oil companies. While American families struggle to fill their tanks, and farmers can't afford diesel fuel, oil and gas companies are realizing massive profits. We need legislation to stop these companies from the price gouging that only adds to the pain at the pump. Big Oil must pay their fair share," said Senator Schiff.

The Oil Company Windfall Profits Tax Act would:

• Impose a permanent excess profits tax on big oil companies; and
• Direct all revenues raised by the excess profits tax to the Highway Trust Fund, Mass Transit Account, and Leaking Underground Storage Tank Trust Fund, consistent with gas tax ratios

As President Donald Trump's war with Iran has entered its seventh month, gas per gallon and utility costs have reached record highs - increasing to nearly double the amount before the war. In California, gas prices have reached over six dollars.

Schiff's legislation comes at a time when even President Trump has called out oil companies - saying this past summer that Americans are being "gouged."

Background: In July, Schiff demanded the Department of Justice (DOJ) launch a federal investigation into potential price gouging by Big Oil companies and publicly report its findings to Congress.

He has previously championed a windfall profits tax on oil companies as a way of shifting the cost burden of gas prices off of American families, who have been spending at least $1.00 a gallon more compared to last year thanks to Trump's war in Iran.

This Summer, outside of a gas station with the highest gas prices in Los Angeles, Schiff held a press conference announcing actions to hold big oil accountable for price gouging consumers at ahead of the Fourth of July holiday.

The full text of the legislation is available here.

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