[Congressional Record Volume 142, Number 58 (Wednesday, May 1, 1996)]
[House]
[Page H4307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE DRAMATIC PRICE INCREASE IN GAS PRICES

  (Mr. SCHUMER asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. SCHUMER. Mr. Speaker, there is one big question in relation to 
the gas tax, and that is if we are going to repeal the 4.3 cent 
gasoline tax, how much of the reduction, if any, will the consumer see?
  If the market is not working, then consumers will not see much of it 
at all, and there are indications that the free market in the area of 
big oil is not working.
  Today I will be sending a letter to the Justice Department seeking 
answers to three questions: First, why did the prices spike so quickly, 
when we all knew there was cold winter months ago and when this idea 
that Iraq would dump oil has been known for several months as well? 
That does not explain a 1-week dramatic rise.
  Second, if there is a true free market, why did not a couple of the 
companies, at least one of the big ones, decide to keep the price low 
and compete on price and increase their market share? That is what Adam 
Smith would tell us they would do.
  Third, most vexing of all, when the price of crude goes up, the price 
of gasoline goes up immediately. But when the price of crude on the 
wholesale market goes down, the price of gasoline hardly goes down at 
all, and if it does, it is slow and grudging.
  Until we answer these questions, Mr. Speaker, we are not going to 
know if the consumers would benefit. And if we can answer these 
questions, drivers will save hundreds of dollars at the pump, not just 
the 4.3 cents of the gas tax.

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