[Congressional Record (Bound Edition), Volume 150 (2004), Part 5]
[House]
[Pages 5636-5637]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          GASOLINE PRICE HIKES

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
  Mr. PALLONE. Mr. Speaker, gasoline prices have hit an all-time high. 
The national average for gasoline is now $1.77 per gallon, up 25 cents 
from the beginning of the year; and President Bush is doing nothing to 
alleviate the strain that this is taking on the American people, on 
American businesses and on the American economy.
  Mr. Speaker, high gas prices impact all of us, consumers and 
businesses alike. High fuel costs translate into a loss in profits 
margins for the manufacturing and transportation sectors that force 
prices for products and services higher, hitting American consumers 
twice. Not only do Americans need to dole out more cash to fill their 
gas tanks with the little disposable income they have left, they are 
forced to pay higher prices for goods and services.

                              {time}  1845

  For instance, Continental Airlines sought to impose a fuel surcharge 
for

[[Page 5637]]

their services. And the real impact of all this is a slowdown in the 
economy with the potential for even more job loss. In fact, an estimate 
by Merrill Lynch shows that every penny increase in gasoline prices at 
the pump is equal to $1 billion in lost consumer spending. That is 
nearly $25 billion in lost spending since the beginning of the year.
  Furthermore, Merrill Lynch estimates that while Federal tax refunds 
would total $55 billion from February to May this year, a 30 percent 
increase from last year, and theoretically give the economy a nudge, 
higher pump prices will wipe out as much as half of the positive 
economic impact that these Federal refunds might have had.
  Mr. Speaker, I would like to point out, too, that this is happening 
on the watch of an administration that said they would make energy 
policy a priority in the United States. Yet more than 3 years after 
President Bush first stepped in the White House, we have no national 
energy policy, and we have no national energy policy because the bill 
that the White House presented to Congress was filled with an 
extraordinary collection of energy industry giveaways, crafted by the 
members of Vice President Cheney's secret energy task force, instead of 
meaningful policies that would increase fuel efficiency and the use of 
renewable and alternative energy sources.
  Mr. Speaker, there are two things that President Bush must do 
immediately. First, he must hold off placing more oil in the Strategic 
Petroleum Reserve until prices come down. The SPR, or the Strategic 
Petroleum Reserve, is a power tool that the President can and should 
use in times of need, and right now consumers need relief. If President 
Bush reduced the amount of oil placed in the petroleum reserve, we 
would have more on the market driving prices down for Americans now. 
The SPR can then be replenished when oil prices are lower.
  Second, Mr. Speaker, President Bush needs to get on the phone with 
OPEC and demand increased oil production. Recent news indicates that 
OPEC has hinted at plans to lower production by 1 million barrels per 
day after April 1; and the administration's response to this from 
Secretary Abraham is that the U.S., and I quote, ``will not beg OPEC 
for oil.'' That is a different tune than the one that candidate Bush 
sang during the 2000 election. Four years ago on the campaign trail, 
President Bush, in a swipe at President Clinton, said, ``What I think 
the President ought to do is he ought to get on the phone with the OPEC 
cartel and say, we expect you to open your spigots and the President of 
the United States must jawbone OPEC members to lower the price.'' Mr. 
President, put your action where your mouth is and insist that OPEC 
increase production now to alleviate the strain these high gasoline 
prices are having on the American people and the American economy.
  Mr. Speaker, we cannot afford to lose more jobs because of the 
President's inability to address this problem. He needs to address it 
now, and I think we should continue to take issue with it and bring it 
up on the floor until he does.

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