WASHINGTON -- President Bush accused Congress of blocking his proposals to deal with high gasoline prices. The president also said he is open to a proposal backed by Senators John McCain (R-Ariz.) and Hillary Clinton (D-N.Y.) to suspend gasoline and diesel taxes this summer. But Bush said he favors longer-term fixes such as encouraging new domestic oil production and building new refineries, said the Associated Press.
Only Sen. Barack Obama (D-Ill.) has not backed the proposal to suspended the gasoline tax. The tax amounts to 18.4 cents per gallon on gasoline and 24.4 cents on diesel fuel. [image-nocss] The average price of a gallon of gasoline is now $3.60 per gallon.
Bush renewed his objection to proposals that the government discontinue keeping up the Strategic Petroleum Reserve (SPR) supply while oil prices are so high. Bush said it is important to keep filling the reserve in case there is a terror attack on U.S. oil supplies.
He also once again called for Congress to permit drilling in the Arctic National Wildlife Refuge (ANWR), a proposal he has made repeatedly since he first took office in 2001, and to pave the way for the building of new refineries. "Another reason for high gas prices is the lack of refining capacity. It has been more than 30 years since America built its last new refinery. Yet in this area, too, Congress has repeatedly blocked efforts to expand capacity and build more refineries," Bush said.
Click hereto read a transcript of the president's press conference.
Sen. Charles Schumer (D-N.Y.) on Tuesday, in the Democratic response to Bush's Rose Garden news conference, said the economy is in its current state because U.S. President George Bush ignored repeated warnings, reported United Press International (UPI).Schumer said Bush "has closed his eyes and put his hands over his ears as these crises have grown. Now all of a sudden he's realizing the problems. He has lost control of what is going on in the American economy and lost the faith of the American people."He also said Bush is "plain wrong" about how to address the situation. In particular, he said, opening ANWR to oil exploration will do nothing to alleviate high gasoline prices, claiming it will take 10 years before new oil could be produced, and then it would reduce the price of gasoline by only a penny a gallon.Schumer said the president cannot be both a friend to Big Oil and back lower prices.
Meanwhile, House Speaker Nancy Pelosi (D-Calif.) said, "During his press conference this morning, President Bush repeated his call for more domestic oil drilling—the same failed energy policy that has brought record gas prices. Drilling has already increased dramatically since 2000—the number of oil wells on land has increased about 66%—and yet the price of gasoline has more than doubled since President Bush took office."
She added that opening ANWR "would have no significant effect on reducing our dependence on foreign oil or the price of gas at the pump," echoing Schumer's reasons.
"To help lower gas prices today, President Bush should temporarily suspend purchases of oil for the [SPR]. Contrary to the President's assertion, the American people would benefit from suspending these government purchases. It could reduce gas prices by five to 24 cents a gallon—a critical first step for America's families, businesses and the economy. The SPR has been tapped before by President Bush, President Clinton and the first President Bush. In 2000, this action brought the price of oil down by one-third—from $30 to $20 per barrel."
Pelosi also said House Democrats have called on the Federal Trade Commission (FTC) to investigate gasoline prices." In our energy bill last year, Congress gave the FTC the authority to probe possible market manipulation of gas prices, but to date, the commission has failed to exercise its power to protect consumers from skyrocketing energy costs. It must do so immediately."She added that "the House has also passed legislation to crack down on oil price gouging, hold OPEC accountable for oil price fixing, and repeal subsidies for profit-rich Big Oil companies so that we can invest in a renewable energy future; however, President Bush and most of his Republican allies in Congress have opposed these efforts."
[See related story in this issue of CSP Daily News for more on Obama and Clinton's energy views.]
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