With gas prices spiking and diesel prices at an all-time high, Sen. Adam Schiff, D-Calif., says he is introducing legislation to discourage oil companies from price gouging at the pump.

The Oil Company Windfall Profits Tax Act would tax “excess” profits by big oil companies. The revenue raised would be directed toward federal accounts dedicated to building highways, supporting mass transit and removing underground storage tanks.

“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,” Schiff said in a statement shared with Spectrum News Thursday. 

A report last month by Democrats on Congress’ Joint Economic Committee found that more than 20 major oil and gas companies reported a combined $85.2 billion in earnings last quarter, ballooning their profits to $125.2 billion in the first six months of the year.

Chevron alone reported $12.1 billion in profits from April to June, the company’s most profitable quarter since 2020. 

This is not the first time Schiff has sounded the alarm on potential price gouging by oil companies. In July, he asked the Department of Justice to investigate whether oil companies were price gouging and report its findings back to Congress. Schiff’s office said it has not yet heard from the department on whether it plans to look into the matter.

With Democrats in the minority in Congress, any legislation proposed by a Democrat faces an uphill battle. The Senate is also scheduled to go on recess in the coming days until after the November election, and the House has already left Washington. Any action on Schiff’s bill would not come until after lawmakers return to Capitol Hill after the November election.