Although crude oil prices are up around the world, that is not the true cause of soaring gasoline prices and the related price increases in food and other necessities in the United States, according to the "Labor Party news."

In terms of gas prices at U.S. pumps, "the smoking gun is record-high oil industry profits," Labor Party news concluded.

The Wall Street Journal reported that ExxonMobil is "gushing money." In 2004, the company's profit was $25.3 billion–the world's largest-ever profit for a single company. In the first quarter of 2005, ExxonMobil's profits rose by 44 percent to $7.86 billion compared with the first quarter of 2004, Labor Party news said.

Over the same period, ConocoPhillips' profits rose 80 percent; Royal Dutch Shell Group's profits were up 28 percent; and the profits of British Petroleum (Amoco) rose 35 percent.

What set up the current situation, Labor Party news noted, were a wave of oil industry mergers between 1997 and 2002. During that time, a total of 34 major oil and gas companies merged into 13 companies, and 15 refining companies shrunk to seven, "dramatically consolidating control over domestic refining and production," Labor Party news said.

A joint report on oil industry consolidation by the Consumer Federation of America and Consumers Union charged that "[e]xcessive industry concentration and anti-consumer pricing behavior is the result of lax anti-trust law enforcement by both the Clinton and Bush administrations."

In terms of reduced refining capacity, the oil industry claims that environmental regulations make building new refineries and operating old ones too expensive.

However, a congressional investigation uncovered internal oil company memos that outline successful strategies to maximize profits by forcing independent refineries out of business, Labor Party news reported.

From 1995 to 2002, 97 percent of the lost or shut-down refining capacity was owned by smaller, independent refiners. "This consolidation of ownership of refinery capacity allows fewer companies to control the flow of gasoline in the United States," Labor Party news said.

Labor Party news noted that President Bush claims he can't do anything about higher gas prices. "But of course, the federal government should (and already does) play a huge role in how gasoline prices are set," Labor Party news said.

"President Bush is doing something about gasoline prices: through lack of enforcement of antitrust laws, mismanagement of the Strategic Petroleum Reserve, and subsidies and tax breaks for the oil industry, he is helping the oil industry make record profits," Labor Party news said.