Grassley Applauds President Bush Helping Lower Gas Prices
GRASSLEY APPLAUDS PRESIDENT BUSH HELPING LOWER GAS PRICES
Senator Chuck Grassley today applauded the commitment by President Bush to grant waivers to reduce regulatory obstacles and increase gasoline supplies if requested by state officials.
On Friday Grassley wrote to the president urging him to closely review and take any action available that will extend the supply of fuels to the market. The letter specifically asked the president about winter and summer fuels as well as actions taken by the EPA following Hurricanes Katrina and Rita.
Here is a comment from Grassley followed by a copy of his letter to President Bush.
"During my town meetings last week, I heard from Iowans about the ill-effects high gas prices are having on their wallets. Farmers, consumers and business people all had great concern about being able to get across the field or get their business accomplished because of the gas prices. Americans are getting hit hard by the high prices of gas and the President today made a strong commitment by calling on the EPA to provide flexibility in the gasoline market to increase supplies. We need to do everything we can to ensure that the economy continues to move full-steam ahead, and high gas prices don't help."
Here is a copy of the letter.
The Honorable George W. Bush
President of the United States
The White House
1600 Pennsylvania Avenue,NW
Washington, D.C. 20510
April 21, 2006
Dear President Bush:
The national average price for gasoline today is nearly $3.00 a gallon. Some analysts are predicating prices over $3.00 and perhaps even $4.00 per gallon this summer. The escalating cost of transportation fuels is hurting consumers, businesses, and farmers, and may ultimately damage our surging economy. I'm writing in the hopes that your Administration can take immediate action to extend fuel supplies and lower prices at the pump.
Much of the cost of transportation fuels is derived from the cost of crude oil. As you know, global demand in China and India, along with market and political instability in Iran, Nigeria and Venezuela are significant contributing factors to the cost of crude oil. In addition, the domestic crude oil production and refining industries in the Gulf of Mexico are still operating at reduced levels due to last year's devastating hurricanes.
I recognize there aren't a great deal of policy options that will have an immediate, significant impact on retail fuel prices. However, I believe there are regulatory actions that may increase the supply of refined products and reduce prices at the pump.
Following hurricanes Katrina and Rita, regulatory actions were taken by the Environmental Protection Agency to extend the supply of refined products to consumers, which had a positive effect.
I know you and your staff are closely reviewing all available policy options to address the escalating cost of transportation fuels. At a time when refiners transition from winter to summer fuels, there may be regulatory actions that will help extend the supply of refined products.
Therefore, I strongly encourage you to closely review and take any action available to you that will extend the supply of fuels to the market.
Thank you for your consideration.
Sincerely,
Chuck Grassley
United States Senator
http://grassley.senate.gov/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=5041&Month=4&Year=2006