Problems That Ohio Faces

PROBLEMS THAT OHIO FACES -- (House of Representatives - July 20, 2004)

The SPEAKER pro tempore. Under the Speaker's announced policy of January 7, 2003, the gentleman from Ohio (Mr. Strickland) is recognized for 60 minutes as the designee of the minority leader.

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Mrs. JONES of Ohio. Mr. Speaker, I thank the gentleman. The gentleman talks about an area in his district which is near and dear to my heart. My grandfather lived in Portsmouth, Ohio, and raised nine children in Portsmouth, and I still have cousins and relatives there.

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Mrs. JONES of Ohio. Mr. Speaker, I also recognize the gentleman from Ohio (Mr. Ryan) from the Youngstown area. He has come to Congress, and he has not missed a beat; and I am so proud and pleased he is doing such a wonderful job.

Tonight I am going to focus on gas prices because gas prices have significantly affected Ohioans. I rise to express my disdain that gasoline prices have increased dramatically, exceeding $2 per gallon, and reached record levels in May 2004. Although recent decisions by OPEC are expected to have some impact on gas prices, the Energy Information Administration has indicated that gasoline price levels are still expected to remain high by historical standards.
These high gasoline prices have significant impacts on family budgets and on the economy as a whole. We were talking about the middle-class squeeze; I am going to talk about middle-class and lower-class squeeze. Who can expect that they are going to have to pay $2 a gallon for gas? Last night in Cleveland at a gas station right around the corner from my house, a guy walked up to the window and said $40 worth of gas.

Increased expenditures for gasoline reduce families' discretionary income and can result in inflation in the price of consumer goods. On May 17, 2004, the Federal Reserve Chairman, Alan Greenspan, indicated that the dramatic increase in oil and gas prices is "an economic event that can significantly affect the long-term path of
the U.S. economy."

A recent report by the staff of the Committee on Government Reform of the House of Representatives found that increased cost of gasoline prices can force motorists in Ohio to pay $483 million more for gasoline in the summer driving season than they did last summer. The increased cost will be approximately $62 million in the Cleveland area alone. For the average family in Ohio, the increasing gasoline prices can increase fuel costs by $125 between Memorial Day and Labor Day.

In recent months, gasoline prices have increased rapidly in Ohio and in the Columbus area. On July 6, 2004, the average price for a gallon of gasoline in Ohio was $1.81. Compared to 1 year ago, that represents a 35-cent-per-gallon increase.

Prices have increased by a similar amount in metro areas throughout the State. On July 6, 2004, average gasoline prices were $1.82 in the Cleveland area, an increase of 32 cents a gallon compared to prices 1 year ago. In 2004, drivers in Ohio will purchase approximately 5.5 billion gallons of gasoline, an estimated 460 million gallons per month. Assuming that the prices remain at the statewide average of 35 cent per gallon average higher this summer than in 2003, increased gasoline prices could cost Ohio drivers an additional $161 million monthly. Over the 3-month summer driving season from Memorial Day through Labor Day, the total increased cost for drivers in Ohio would be $483 million. An estimated 12 percent of all gasoline used in Ohio is used in the Cleveland area. That means that Cleveland drivers purchase approximately 57 million gallons of gasoline monthly. Assuming gasoline prices in the region remain 36 cents per gallon higher this summer than last year, increased gasoline prices will cost Cleveland drivers almost $21 million monthly. For the 3-month summer driving season from Memorial Day through Labor Day, the increased cost for Cleveland drivers would be approximately $62 million.

There are 7.7 million registered drivers in Ohio. On a per-driver basis, the increased gasoline prices will cost the average driver in Ohio $60 over the summer months. An average two-car family in Ohio will spend an additional $125 for gasoline during the summer driving season, and the list goes on.

I am here to say that under this administration, we have not seen any efforts to decrease the cost of gasoline, which continues to put a pinch on our families.

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Mrs. JONES of Ohio. Mr. Speaker, I heard on the news that a Saudi person, a representative said in fact they do this every time a Presidential year comes up, nearer to the Presidential election, they reduce the cost of gasoline in an effort to support the President.

I want to remind Members of one more thing. I heard candidate Bush, then-candidate, now President Bush, say if Bill Clinton wanted to reduce the cost of gasoline in the United States, all he would have to do was pick up the phone, call the OPEC leaders and say, turn on the spigot.

My statement to President Bush is practice what you preach. Pick up the phone, call the OPEC leaders, and tell them to turn on the spigots. It is a much more complicated process than that. He knows it, but now he is not willing to step up and do what he said back when he was a candidate.

I want to again thank the gentleman from Ohio (Mr. Strickland) for his leadership. I thank the gentleman from Ohio (Mr. Ryan) for the opportunity to be a colleague of his.