Posted on 04/25/2006 8:36:15 AM PDT by libertarianPA
WASHINGTON - President Bush on Tuesday ordered a temporary suspension of environmental rules for gasoline, making it easier for refiners to meet demand and possibly dampen prices at the pump. He also halted for the summer the purchase of crude oil for the government's emergency reserve.
The moves came as political pressure intensified on Bush to do something about gasoline prices that are expected to stay high throughout the summer.
Bush said the nation's strategic petroleum reserve had enough fuel to guard against any major supply disruption over the next few months.
"So, by deferring deposits until the fall, we'll leave a little more oil on the market. Every little bit helps," he said.
Wholesale gasoline futures prices for June delivery dropped 8 cents a gallon to $2.10 on the New York Mercantile Exchange immediately upon Bush's remarks.
Easing the environment rules will allow refiners greater flexibility in providing oil supplies since they will not have to use certain additives such as ethanol to meet clean air standards. The suspension of oil purchases for the federal emergency oil reserve is likely to have only modest impact since relative little extra oil will be involved.
The high cost at the pump has turned into a major political issue, with Democrats and Republicans blaming each other for a problem that is largely out of Congress' control. Republicans are worried that voters paying more than $3 per gallon would punish the party in power. Democrats want to make that happen.
Bush said that high gasoline prices are like a hidden tax on consumers and businesses, although he said the nation's economy was strong. He urged Congress to take back some of the billions of dollars in tax incentives it gave energy companies, saying that with record profits, they don't need the breaks. He urged lawmakers to expand tax breaks for the purchase of fuel-efficient hybrid automobiles.
The president said Democrats in the past have urged higher taxes on fuel and price caps to control fuel expenses, but he said neither approach works. Instead, he called for increased conservation, an expansion of domestic production and increased use of alternative fuels like ethanol.
Bush said high energy prices are disturbing.
"Our addiction to oil is a matter of national security concerns," the president said in a speech to the Renewable Fuels Association, which advocates alternate energy sources. "After all, today we get about 60 percent of our oil from foreign countries. That's up from 20 years ago, where about 25 percent of our oil came from foreign countries."
Bush said gasoline prices are expected to remain high throughout the summer and "that's going to be a continued strain on the American people."
Bush said the Federal Trade Commission, the Justice Department and the Energy Department were investigating whether the price of gasoline has been unfairly manipulated. The administration also contacted all 50 state attorneys general to offer technical assistance to urge them to investigate possible illegal price manipulation within their jurisdictions.
During the last few days, Bush asked his Energy and Justice departments to open inquiries into whether the price of gasoline has been illegally manipulated.
It's unclear what impact, if any, Bush's investigation would have on prices that are near or at $3 a gallon or more. Asked if Bush had any reason to suspect market manipulation, White House press secretary Scott McClellan responded, "Well, gas prices are high right now, and that's why you want to make sure there's not."
The administration sent letters Tuesday to state attorneys general urging them to vigorously enforce state law "against any anticompetitive, anticonsumer conduct in the petroleum industry."
"Consumers around the nation have expressed concerns about what they have perceived as anticompetitive or otherwise unfair conduct by the world's major oil companies," said Attorney General Alberto Gonzales and Federal Trade Commission Chairman Deborah Platt Majoras. Their letter said federal agencies had substantially increased efforts to monitor, detect and prevent any violations of the law.
House Speaker Dennis Hastert, R-Ill., and Senate Majority Leader Bill Frist, R-Tenn., urged Bush in a letter Monday to order a federal investigation into any gasoline price gouging or market speculation.
"There is no silver bullet," Frist said Tuesday on ABC's "Good Morning America," but "we need to make sure that any efforts at price-gouging be addressed and addressed aggressively." Meanwhile, Frist said, consumers should take steps to conserve gasoline — drive at slower speeds, tune up car engines for maximum efficiency and carpool.
Senate Democratic leader Harry Reid of Nevada dispatched his own letter, calling for a multi-pronged approach to restrain gas prices.
About time. Hopefully the next steps are to suspend the federal excise tax on gasoline, and to call on the states to sit down and come up with a few standard blends.
If the Republicans can sieze this issue and make a sound environmental decision without being as ridiculous as the tree huggers have been, they should be able to make some ground with this one. If we don't make it cost effective for the oil companies to build refineries and drill for oil, it isn't going to happen.
p.s. Now if they could just relieve some of the taxes on gas, that would help too.
Dream on... I wish people would realize that.
Of course it's the evil oil companies that are making their gas expensive. /sarc
hopefully from your lips to Washington's ears
If he could somehow put a moratorium on the gas tax, he's see his #s double.
Correct. If prices do go down as a result of this, Bush and the Reps would do well to beat this drum - expose the environmentalist whacko Dems for creating artificial high prices on so many goods.
Tree huggers will sue oil companies for clean air violations and consumers will end up paying even more for gasoline.
"hopefully from your lips to Washington's ears"
Aren't most of the taxes on gasoline largely state and local? I'm not sure I've seen a breakdown on that, though.
Then he should "temporarily" remove the excise tax on imported ethanol from Brazil. IIRC, it's $0.58 / gallon.
Good.
AND BUILD A FRIGGEN' REFINARY OR TWO!!
Oh dear, oh dear!!!
Our noses will fall off because of this!!!
Pollution from automobiles are causing the earth to warm and the sky to fall!!!
What will the Sierra Club, the Greens and the other environmentalists ever think!!
You beat me to the punch on this one! A glimmer of hope shines through the clouds....someone is doing something that makes sense!!!
I'm not sure either, to be honest. I'm sure government at all levels have their hands in the gas consumer's pockets
And, prices have started to level off.
Gas Prices Leveling Off, Show 3-Day Downward Trend in Several States
"I'm sure government at all levels have their hands in the gas consumer's pockets"
No doubt about that.
Another thing he could do is ask congress to suspend the federal gas tax which goes to fund mostly pork projects and make the Rats and some so called Republicans defend not cutting the price per gallon by 20 to 30 cents a gallon.
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