06.15.04

Members of Washington Delegation Release New Report Showing Higher Gas Prices Will Cost Average Washington Family An Extra $225 By Labor Day

Sen. Cantwell will participate in Energy and Natural Resources Committee hearing on gas prices today

WASHINGTON, D.C. – Today members of Washington state's congressional delegation released a new government report which shows that higher gas prices will cost the average Washington family an additional $225 between Memorial Day and Labor Day.

The report found that on June 14, 2004, the average price of a gallon of gasoline in Washington state was $2.26 – an increase of 68 cents from one year earlier. If gas prices remain 68 cents per gallon higher than last year's prices for the duration of the summer, Washington drivers will pay an additional $493 million in gas costs during the summer driving season.

"These higher gas prices are putting a chokehold on family's pocketbooks and our economy, but the reasons for the increase is shrouded in too much secrecy and confusion," Sen. Maria Cantwell (D-WA) observed. "In order to bring prices down, we need to open the books of America's petroleum industry so that we can have a full understanding of what is actually going on in gas markets and of what we can do to lower gas prices."

Rep. Jay Inslee (D-WA-01) said, "This report demonstrates once again that Washington State consumers are getting hit in the wallet by the Bush Administration energy policies. First both the President and Vice President stand in the way of controlling electricity prices during the West Coast energy crisis when Enron gouged consumers. Yesterday the House Republicans killed my amendment to provide refunds for our constituents bilked by Enron. Now the President's policies are driving up gasoline prices, once again hurting Northwest consumers meeting their energy needs."

Today, Sen. Cantwell will participate in a hearing of the Senate Energy and Natural Resources Committee on higher prices for the oil and transportation fuels markets and potential policy responses. Cantwell plans to ask the witnesses – who will include representatives of the Department of Energy's Energy Information Administration and the American Petroleum Institute – how market consolidation and petroleum exports may have enabled domestic petroleum companies to create artificial supply shortages to jack up gas prices and reap record profits.

"The recent surge in the cost of gasoline has hit the Northwest particularly hard, straining family budgets and our economy," Cantwell said. "Yet energy companies made record profits in the first quarter of 2004. I strongly believe that the Administration should conduct a review of the volatile petroleum markets to ensure consumers are not being gouged at the gas pump."

On a per-driver basis, higher gas prices will cost the average Washington state driver $110 between Memorial Day and Labor Day. The typical two-car family in Washington will spend an extra $225 over the same period.

"American ingenuity and technology can help reduce our dependence on foreign oil without any loss in vehicle performance or safety," Cantwell said. For example, Cantwell supports tax incentives for fuel-efficient vehicles that can help stretch mileage between fill-ups. She is also working with Sen. Chuck Schumer (D-NY) to develop legislation to encourage the use of low-friction tires, which would cost only a few dollars more per set of tire s, but save the average driver at least $100 worth of fuel over the tires' 40,000-mile life.

Sen. Cantwell and Reps. Norm Dicks, Jim McDermott, Jay Inslee, Adam Smith, Brian Baird, and Rick Larsen requested the report, which was prepared by the minority staff of the House of Representatives Committee on Government Reform.

To read the report, click here.