Leaders Question Gasoline Prices (Hastert, Frist to ask for Probe)

Washington Post ^ | April 21, 2006 | Steven Mufson and Timothy Dwyer

[rightwingintelligentsia]

Congressional leaders yesterday planned to ask President Bush to order investigations into possible price gouging by oil companies as crude oil prices hit new highs on world markets and average gasoline prices in the nation's capital blew through the $3-a-gallon mark.

House Speaker J. Dennis Hastert (R-Ill.) and Senate Majority Leader Bill Frist (R-Tenn.) are preparing to send a letter to the president Monday asking him to direct the Federal Trade Commission and Justice Department to investigate alleged price gouging and instruct the Environmental Protection Agency to issue waivers that might make it easier for oil refiners to produce adequate gasoline supplies, Hastert spokesman Ron Bonjean said.

Hastert and Frist's letter comes amid charges by some consumer groups and Democrats that oil companies have manipulated refineries and oil inventories to drive up prices. Hastert also took aim at the rich pay package for Exxon Mobil Corp.'s retired chief executive, which he called "unconscionable."

Yesterday, oil prices climbed to a new record, unadjusted for inflation, with benchmark crude rising $1.48 to settle at $75.17 a barrel on the New York Mercantile Exchange. Average gasoline prices in the District reached $3.02 a gallon, up 3 cents from the day before.

AAA Mid-Atlantic moved to discourage panic. "We caution drivers against hoarding or panic-buying. If one gas station is out, the next one will have fuel," said John B. Townsend II, AAA Mid-Atlantic's manager of public and government affairs.

[Dan Evans]

It would seem that a lot of the Congress are as stupid as the rest of us in here for believing gas companies may be gouging us.

The irony is that Congress is part of the problem, not the solution. So many things they've done have contributed to the problem.

[tobyhill]

This is the best move the Republicans can make, don't target the free market system but target POSSIBLE problems and illegal activities within the free market system. This is where the Republicans can take the high road where the Rats only solution is to destroy the free market system.

[greasepaint]

the gasoline formula law, changes on May 6th.

that is a big part of the problem.

Bush could fix part of this, with the
stroke of a pen.

I urge him to do so.

I'm getting tired of this.

[goldstategop]

The government gouges us at the gas pump. Your local gas station owner, believe it or not, makes only pennies on the dollar. The gas business isn't going to make you rich. The feds take a big cut of every cent per gallon and the oil company takes most of the rest. In the end, the gas station owner is left with bubkes.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[Nathan Zachary]

I have two of those old fuel oil trucks. The problem is diesel is ok to store up, (I burn it all on the farm anyways) but gas goes bad after 3 months unless you spend alot on preservative. Even then it still goes stale after a while.
I've tried pouring ethanol into it as well, but it still goes stale afer 4 months or so. It still burns, but you can smell it. They don't make gas like they used to.

[Nathan Zachary]

"What are liberals complaining about?"

I can't remember the name of the show, (Colbert?) But he had Ralph Nader on, who was complaining about gas prices, and the republicans. He asked him, did he walk to the show? take a cab? ride a bike? Then called him a gypocrate. I guess you had to see it, It shut him up quick.

[LibLieSlayer]

The average America citizen (the one's that believe the MSM ABC/NBC/CBS) thinks there is a conspiracy. They blame "Bush and Cheney" because "They are BIG OIL men"! I have heard this crap for the last two weeks.

Calling for an investigation is a politically smart move. It takes the heat off of the administration, and if they find anything, the focus will be on those that are guilty (if any guilty exist). Do nothing, and Republicans will suffer "guilt by association".

LLS

[backhoe]

What are liberals complaining about? Now that we pay European prices for gas, they ought to be happy! What is every one getting so upset at the oil companies for? With all the obstacles in the way of domestic production, its a wonder gas isn't ten times more expensive than it currently is. If anything, the price of gas is too low to drive down the demand. This illustrates like nothing else, congressional hypocrisy about energy and conservation. In a sane world, the oil companies would be applauded for higher prices to encourage less fuel use. Instead, they're getting blamed for not letting Americans indulge in their gas guzzling habits! If this wasn't so bollixed up, I wouldn't know whether to laugh or to cry amidst all the demagogery in Washington.

It's ironic, isn't it?

All I've heard for years from the Left is how we need to be more "European"-- including their obscenely priced fuels.

You'd think they'd be happy, and shut up for a while.

One thing they conveniently overlook is that states like mine are bigger than several European countries put together-- if I go in the right direction, I can drive all day and never leave my own state.

The nearest city is two hours away. It's a completely different scale.

Because it's compact, Europe has better-developed mass transit-- in contrast, the last three attempts in my small city ( 16,000 people ) fell over dead because there just weren't enough riders going to the nearest three other towns. The last viable bus & trolley company was in WWII, went we had 80,000 residents here.

And you're right about the oil companies- in a rational world, we'd turn 'em loose to go and do what is their business- find, and distribute energy.

Instead, our "critters" in DC hold the equivalent of Stalin's Show Trials.

[goldstategop]

I would prefer to see a principled defense of the free market. Demagogues aren't interested in the truth; they're invested in taking advantage of people's fears and worries for their own advantage. Don't believe their claims for a moment its our welfare they have at heart.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[CDHart]

They do this every year just before Memorial Day, don't they? Just a posturing bunch of power-hungry windbags, sound and fury signifying nothing and doing it on our money.

Carolyn

[G.Mason]

"The core problem is still a lack of refinery capacity, and a stupid anti-drilling blockade in congress."

Exactly right, because they are reading this crap and others like it.

For those who wish to educate themselves about oil, you can start by mashing here.

Enjoy.

[stopem]

Meanwhile we are paying the price.

[Nathan Zachary]

"However our soldiers in the field deserve better then to have the ilk of the Democratic party in a majority in any branch of Congress."

Yes. Sometimes the pill is a bitter one to swallow, but the alternative is unthinkable. We just have to work at switching out the bad ones.

[Dan Evans]

I hate to say it...but ask the oil companies why they didn't plan better for the transition?

What difference would it make? If they had made the transition earlier, we would have had the shortage earlier.

And, as I understand it, some of the problem is in making the change from winter fuel to summer fuel. They couldn't have done it earlier.

[goldstategop]

Instead of moving to eliminate taxes and obstacles to domestic production, Hastert and Frist want to hound the oil companies to price gas, not in response to market conditions but to get the heat off the politicians. Yeah, real brave of them!

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[goldstategop]

Huh? We can drive less; we can take the bus to work. We can ride our bicycles around the neighborhood. And we can always walk. When prices reach a point that constrains demand for the product, they inevitably come down. This ain't rocket science; this is basic economics. But don't tell that to our ignorant politicians.

(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")

[Dustbunny]

Probe, what a joke.

DRILLING IS WHAT IS NEEDED !!!!!!

[stopem]

But we are addicted. Our cars rule ;)

We practically all but live in our cars and you are suggesting we walk? Wow new concept.....

[LibLieSlayer]

Well I anticipated this track, and I believe the same as you. What better way to defend the free market, than by the investigation showing that envirowacked laws, boutique fuels, anti-domestic oil production laws, lack of refinery capacity, anti-American manipulation of International oil prices, futures markets, and 45 years of dim mismanagement lie at the heart of today's high prices.

Oil company execs need to state these thing in open hearings, where the LSM will be forced to report these truths. The President and the Republicans can then take the truth to the American people, and '06 can be a rout on the evil dim party. This is what I believe the plan is, and Newt was one of its authors.

LLS

[Dan Evans]

the prices began rising rapidly even BEFORE crude oil prices rose. In fact, when the spike began crude prices were down.

The gasoline shortage is caused by lack of refining capability, not lack of crude. Gasoline is being produced at a steady rate, but demand fluctuations cause price fluctuations.