Bush Threatens Veto of Gas Gouging Bill

WASHINGTON (Dow Jones) -- President Bush is likely to veto legislation that would create hefty fines and criminal penalties for gasoline price-gouging, the White House said Wednesday.

The threat came as the House prepared to vote on a Democratic plan aimed at battling rising gasoline prices by requiring the Federal Trade Commission to define "price gouging." The bill would create fines and criminal penalties, including jail time, for industry executives found guilty of gouging.

The White House, in a formal statement of administration policy, said the legislation amounted to price controls that would hinder oil companies and retailers from responding to market signals, potentially worsening fuel shortages.

"Gasoline price controls are an old -- and failed -- policy choice that will exacerbate shortages and increase fuel hoarding after natural disasters, denying fuel to people when they most need it," the White House said, adding that Bush's senior advisers would recommend a veto of the House bill or any similar legislation that makes it to his desk.

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