Blumenthal: Time to Play Hardball on Gas Prices

Sen. Richard Blumenthal (D-Conn.) says it's time for the federal government to play hardballin its probe of gasoline prices.

The Justice Department announced last week that, acting on President Obama’s direction, it was forming a multi-agency task force to study whether the price of gasoline is being artificially manipulated and what role speculative trading is playing in energy prices.

But Blumenthal, a freshman senator who served many years as Connecticut’s attorney general, said on CBS News’ “Face The Nation” thatwhat's needed isan aggressive federal probe – including a possible grand jury investigation –into whether rising gasoline prices stem from illegal manipulation of energy markets.

“There needs to be very possibly a grand jury to uncover the potential wrongdoing,” said Blumenthal, who said subpoenas and other compulsory processes also needed to be brought into play.

“The Justice Department should take the lead, seize this moment and send a message, a very strong deterrent message that this country will not tolerate the kind of illegal speculation and trading and hedge fund activity that may be driving prices up,” he added.

House Speaker John Boehner (R-Ohio) said through a spokesman thatthe Democratic focus on potential market abuses is a distraction from the need to expand U.S. oil-and-gas drilling.

But Blumenthal said people had a right to be upset about gas prices, which now top $4 in much of the country.

“If you’re out in America the way I am… you really hear how people are still hurting, struggling to stay in their homes, to find jobs, to make ends meet,” he said. “They have a right to be angry at Washington – because Washington hasn’t been listening.”

Blumenthal’s comments come as rising gas prices are reaching the top of the political agenda on Capitol Hill and at the White House.

The nationwide average gas price is $3.86-per-gallon, compared to $2.85 a year ago, according to AAA.

Attorney General Eric Holder last week vowed, “If illegal conduct is responsible for increasing gas prices, state and federal authorities should take swift action.”