Gasoline Price Spike Assailed

Gasoline Price Spike Assailed

In the wake of a new report from the Department of Energy indicating that gasoline prices this summer are projected to rise to an average of $2.62 per gallon this summer - 25 cents higher than the same time period last year - Representative Edward J. Markey (D-MA) called for a re-examination of Republican energy policies and urged passage of the "Royalty Relief for American Consumers Act of 2006" to revoke billions of dollars in royalty relief handouts to big energy companies, and H.R. 3762, a bill requiring meaningful increases in fuel economy standards for cars and light trucks.

"With oil and gas prices at these levels, it is absurd to be handing over tax breaks and royalty-free drilling rights to oil companies who are essentially tipping consumers upside-down and shaking money out of their pockets," said Rep. Markey, a senior Democrat on the House Energy and Commerce Committee.

"With gas prices soaring as we approach the summer driving season, we are starting to reap the results of the Republican Party's misguided energy policy," Rep. Markey continued. "We have a President who says we are addicted to oil, but pursues policies that do nothing to cure the disease.

"It is time to suspend all so-called ‘royalty-relief' for oil companies to drill for oil and natural gas on public lands. Offering financial ‘incentives' to the oil companies for drilling at today's high prices is like subsidizing a fish to swim. It should be halted.

"It's also time for us to begin making some significant increases in motor vehicle fuel economy. The President's fuel economy regulations for SUVs are inadequate at best - and the enormous tax subsidies the Administration allows gas guzzlers to receive simply continue to encourage their purchase."

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http://markey.house.gov/index.php?option=com_content&task=view&id=1434&Itemid=125