Governors Blame President for Rising Gas Prices

OLYMPIA, Washington, May 18, 2004 (ENS) - Washington Governor Gary Locke, a Democrat, said Monday he was “very disappointed” by the Bush administration’s response to a letter by him and nine other governors seeking an inquiry into the causes of the current high gasoline prices.

“People are paying outrageous prices at the gas pumps this summer, but the administration’s response seems to be business as usual,” Locke said. “They say they’re watching the oil markets at work, but apparently they don’t want an inquiry that might reveal illegalities or provide a strategy for stabilizing gas prices.”

The governors, all Democrats, wrote to President Bush on April 7, requesting a “prompt and thorough inquiry” into the recent surge in gasoline prices that are affecting critical components of the economy. The average price of a gallon of gas in Washington has soared to $2.22, a 15 percent increase in just one month, and an increase of almost 40 percent in the last year.

"This is a significant national concern, and it deserves more than the traditional Washington political response of pointing fingers," the letter said.

In the White House response dated April 30, an assistant to the President would not commit to conducting an inquiry into gas price increases, but said the Department of Energy would continue to monitor energy supplies and would refer any evidence of anti-trust violations to the Federal Trade Commission. He noted that the President has said, “oil producers should not take actions that will hurt consumers.”

Locke said, “I appreciate that the President has said oil producers should not hurt consumers, but it’s not oil producers’ jobs to protect consumers. It’s the government’s job to protect consumers, in part by identifying and addressing dysfunctional markets. I thought they would have learned that during the California energy crisis.”

The official also said the administration was meeting privately with big oil producers, but that it would not disclose the substance of the meetings. He then mentioned a number of factors he said contributed to the high prices, including low product inventories, higher demand “due to the economic recovery,” and “new fuel specifications to increase environmental protection.”

Locke said the administration’s response begs the question. “Our economy was much stronger before President Bush took office,” he said. “Yet we didn’t have prices like this then, and we certainly didn’t have prices spike so high so quickly. There is at least a suspicion that something else is at work here, and all we are asking is for the administration to look into the matter.”

At the very least, Locke said, the President should share the substance of his meetings with oil executives about the gasoline prices. “The administration is meeting with gas producers, but they won’t share with the American people what they’re learning. At the same time, the oil industry is enjoying billions in increased profits and people continue to pay at the pump. We deserve to know exactly what the White House and oil executives are saying about these price increases.”

Governor Janet Napolitano of Arizona, said, "We already know about those factors mentioned in the White House letter – they are standard parts of the gas price equation. What is incredible to me is that, at a time when the oil industry is reporting billions in profit, we can’t get anything better than the standard answers.”

“States are limited in what we can do to bring prices down. This is a federal issue," she said. "But here in Arizona, I’ve directed my staff to explore any and all options to bring price relief to our citizens.”

In addition to Locke and Napolitano, the letter was signed by Governors Ruth Ann Minner of Delaware, Joseph Kernan of Indiana, Thomas Vilsack of Iowa, Kathleen Sebelius of Kansas, Jennifer Granholm of Michigan, Bill Richardson of New Mexico, Bob Holden of Missouri and Jim Doyle of Wisconsin.