Senator Harkin Addresses Gas Price Crisis; Pushes Legislation to Stop Filling Emergency Oil Reserve
Press Release
Senator Harkin Addresses Gas Price Crisis; Pushes Legislation to Stop Filling Emergency Oil Reserve
Recent talks about eliminating fuel tax would cost Iowa's DOT at least $75million per quarter based on 2006 estimates
U.S. Senator Tom Harkin (D-IA) today called on Congress to address the gas price crisis with substantive action that would provide real relief to American consumers. In the last year, gas prices have skyrocketed from $2.97 to $3.62. Harkin pushed for legislation he co-sponsored which would temporarily halt contributions to the Strategic Petroleum Reserve (SPR) - a supply created in 1975 to keep prices down in the U.S. in the event of a war.
"Why should the federal government be purchasing oil to contribute oil to the strategic reserve for a time of crisis when the time of crisis has arrived? While this is by no means a long term solution, it is something we can do immediately to impact the supply of oil and give consumers some relief at the pump," said Harkin.
Senator Harkin joined his colleagues in co-sponsoring legislation that would cease the purchase of oil for filling the SPR. The legislation is an amendment to a bill that is currently being debated in the Senate that would modernize the Federal Aviation Administration and protect consumer rights.
Harkin criticized proposals seeking the elimination of an 18 cent per gallon gas tax because it wouldn't guarantee oil companies would pass the savings on to consumers. Harkin also objected because the proposal would eliminate at least $75 million per quarter - based on 2006 estimates - that the Iowa Department of Transportation gets to use on roads and bridges in the state. In effect, enacting a gas tax moratorium for the summer would amount to a loss of at least $75 million in revenues to rebuild the highways, roads and bridges in Iowa.
"To this day, no one has been able to assure me that the oil companies will pass the full savings of a gas tax moratorium onto consumers," said Harkin. "We should not cut the funds to our state transportation departments only to see those funds pad the pockets of oil company executives. Now is not the time to cut off funding to our road and bridge construction projects across Iowa - projects that provide good jobs and improve the basic infrastructure Iowa families and businesses depend on," said Harkin.
Source