Bush, Kerry Spar Over Rising Gasoline Prices

By J.R. Pegg

WASHINGTON, DC, March 31, 2004 (ENS) - Democratic presidential candidate John Kerry blasted the Bush administration Tuesday for the nation's rising gasoline prices and said the administration has done "nothing" to help consumers at the pumps. The White House in turn blamed Congress for the rising prices and said Kerry favors raising gasoline taxes, as both sides battled for advantage on an increasingly contentious issue.

According to the U.S. Energy Information Administration (EIA), the average nationwide retail regular unleaded gasoline price hit a record high of $1.758 per gallon on Monday.

EIA officials and industry experts say Americans are likely to see further price increases and should not expect relief any time soon because of a tight global market.

At a rally in San Diego, Kerry outlined his plan to lower gasoline prices and told supporters that President George W. Bush and Vice President Dick Cheney "have bent over backwards to help their big contributors in the oil industry."

Gasoline prices have risen 11.5 percent since Bush took office, Kerry said, and consumers will spend $24 billion more to fuel their cars and trucks this year.

"We need a new direction on energy policy," Kerry said. "I am going to stand up for students and middle class families and all those who need relief at the pump."

Democratic presidential candidate John Kerry blames the Bush administration for high gasoline prices. (Photo courtesy Kerry Campaign)

"I will use real diplomacy to do what George Bush has not - pressure OPEC to start providing more oil," said Kerry.

OPEC is meeting today in Vienna to consider a proposed one million barrel cut in production set to begin this week. OPEC ministers indicated Tuesday that they would go ahead with the reduction, set to start Thursday.

Administration officials say they have worked with OPEC ahead of today's meeting, but White House Spokesman Scott McClellan said Tuesday that Congress is ultimately to blame for the rising gasoline prices.

"We would not be in this situation right now if Congress had acted on what the President proposed some three years ago to pass a comprehensive energy policy," McClellan said.

"We continue to engage in ongoing discussions with major producers around the world about the importance of letting the market determine the prices," he added. "But again, what needs to happen is Congress needs to pass a comprehensive energy strategy."

Senator Diane Feinstein, a Democrat from California - where gasoline prices have hit $2.13 a gallon - told reporters Tuesday that the energy bill is not the answer.

"It is a terrible bill," she said. "It does not benefit consumers, but it [does benefit] the oil and gas companies. They already benefit from $10 billion in tax breaks - this bill would give them $10 billion in additional tax breaks."

President Bush, speaking a campaign rally in Wisconsin, alluded to a television advertisement unveiled Tuesday by his reelection campaign that criticizes Kerry for supporting an increase in the gasoline tax.

"There are some - there are some in the other party in Washington - who would like to raise gas taxes," Bush said. "I think it would be wrong. I think it would be damaging to the economy, not positive to the economy."

President George W. Bush spoke Tuesday to supporters in Wisconsin. (Photo by Eric Draper courtesy White House)

The ad claims Kerry said he supports a 50 cent per gallon increase in the federal gasoline tax and voted 11 times to raise the tax.

The Kerry campaign says their candidate has never voted for a 50 cent increase and calls the allegations about his voting record misleading.

The votes cited by the ad include several procedural votes, according to Kerry's campaign spokesperson, and several for a Clinton administration economic package that included a 4.3 cent per gallon increase in the federal gasoline tax.

The Kerry campaign observed that the Bush administration has never called for a reduction in the federal gasoline tax and says its policy of filling the Strategic Petroleum Reserve is helping oil companies at the expense of consumers.

The White House has continued diverting 120,000 barrels of oil each day into the reserve despite rising prices.

Bush administration officials say it is critical for the nation's security to completely fill the 700 million barrel reserve, which currently contains some 645 million barrels.

Americans are driving more than ever before - and paying more to fuel up their vehicles. (Photo by Ian Britton courtesy freefoto.com)

Kerry said he would to work to streamline the more than 300 state and local fuel regulations to reduce fuel costs and touted his energy plan as the final piece of his strategy to reduce gasoline prices. The nation needs to embrace renewable energy and hybrid vehicles, Kerry said, and can not expect to drill its way to energy independence.

"Instead of a secret energy meetings and drilling in the Alaskan wilderness, we are going to have a real energy plan for America," he said. "Under my plan, America will be energy independent from Mideast oil in 10 years, the fuels of the future will be less expensive, cleaner, and our young men and women will never have to fight and die for foreign oil."

The United States consumes some 20 million barrels of oil daily - more than 60 percent is imported.