US Democrats blame Bush for high gasoline prices
By Christopher Doering
WASHINGTON, March 24 (Reuters) - Four Senate Democrats Wednesday said the Bush administration's failure to release oil headed for the nation's emergency crude oil stockpile into the market will send gasoline prices higher, forcing consumers to reduce spending on other goods.
"If the consumer is now going to have to haul out more money from their wallet in order to pay gasoline prices, that is going to ripple all the way through the economy," said Sen. Ron Wyden, an Oregon Democrat.
The average U.S. retail price for a gallon of gasoline hit an all-time high of $1.74 on Wednesday with more increases likely ahead of the summer driving season, according to the American Automobile Association. The Department of Energy predicted earlier this week gasoline prices will average $1.83 a gallon in April and May.
"We're worried about purchasing power," said Sen. Charles Schumer, a New York Democrat. "Instead of people having a little extra money in their pocket to go on vacation, (or) buy the new car ... they're paying it to OPEC."
Wyden and Schumer joined Sen. Harry Reid, the second-ranking Democrat in the Senate, and California Sen. Barbara Boxer in blaming President George W. Bush for failing to do enough to curtail soaring gasoline prices.
The Bush administration acknowledged it was concerned about rising gasoline prices, but it has repeatedly rebuffed calls from Republican and Democratic lawmakers to delay shipments to the crude oil stockpile.
The administration maintains that the amount of oil being shipped to the stockpile, the Strategic Petroleum Reserve, is too small to affect market prices. U.S. Energy Secretary Spencer Abraham also told Congress this week that the stockpile must continue to be filled as a national security measure.
"We need to make sure we have the resources in the Strategic Petroleum Reserve to act in the event of a national emergency, which would be a severe disruption of energy supply," said White House spokesman Scott McClellan.
Virginia Republican Bob Goodlatte, House Republican Whip Roy Blunt of Missouri and other lawmakers sent a letter to Bush on Monday asking him to stop filling the stockpile to ease fuel prices for farmers preparing for spring plantings.
The Federal Reserve has said that surging oil prices might be a factor that could stoke a rise in inflation.
The U.S. Labor Department's consumer price index showed gasoline costs rose 2.5 percent in February after an 8.1 percent climb in January, signaling growing inflationary pressure. Gasoline accounts for about 3 percent of all goods and services bought by consumers, according Labor.
Crude oil futures for May delivery, which soared to a 13-month high of $38.50 a barrel last week, ended Wednesday trading at $37.01 per barrel. Crude oil accounts for about half of the cost of a gallon of gasoline.
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