State Representative Chris Perone, who represents Norwalk in the Connecticut General Assembly, voted for legislation (SB 457) that caps the gross receipts tax (GRT) on motor fuels at $3.00 per gallon wholesale.
“Gas prices have risen 15% since the beginning of the year. We have taken action today that will provide relief at the pump from these oppressive gas prices. And all savings will go directly to Connecticut consumers—not the big oil companies,” said Rep. Perone
Rep. Perone explained that the legislation specifically prohibits oil wholesalers and distributers (those who pay the gross receipts tax) from passing on anything purporting to be based on the tax for the portion of any sales price over $3.00 per gallon.
Large wholesalers in violation of profiteering statutes have much greater impact on consumers than individual retailers, so the legislation specifically grants the commissioner of the Department of Consumer authority to impose CUPTA fines of up to $10,000 upon large gasoline wholesalers and distributors who are in violation of profiteering laws.
The state’s petroleum profiteering law was also amended by today’s legislation to include an automatic trigger, based on extreme wholesale price increases, for price gouging protections to go into effect.
The bill, which is now headed to the governor for his signature, institutes similar profiteering protections in regards to home heating oil.