As North Carolinians Take to the Road, Etheridge Urges Policies to Lower Gas Prices

RALEIGH- As millions of Americans prepare to kick-off the summer travel season this Memorial Day weekend, U.S. Rep. Bob Etheridge called for policies to lower prices at the pump. Average gas prices across the country have now topped $2 a gallon, and North Carolina consumers are facing average prices of $1.95 a gallon. With nearly 31 million Americans expected to travel this Memorial Day weekend, these record-high gas prices are sure to hit consumers' wallets.

"This Memorial Day weekend, regardless of where North Carolinians go or how far they travel, they will all be confronted by the same ugly truth: our nation is experiencing record-high gas prices," Etheridge said. "In North Carolina, AAA is recording the highest gas prices since they started keeping records. Truck drivers, farmers, families, seniors are all feeling the pinch, especially the middle class. I urge the Administration to take action now to bring down gas prices. I want my message and the message of the North Carolina driving public to be heard loud and clear: open the spigots!"

According to AAA, the average price for a gallon of regular gas in the Triangle is $1.95, and consumers in Fayetteville are seeing an average price of $1.96. Analysts have speculated the price will continue to rise, with some speculating prices could rise as high as $3 per gallon. Those prices are up nearly 60 cents from one year ago. Much of the rise in gas prices can be traced to a February OPEC decision to cut production by 2 million barrels of crude oil as of April 1, resulting in crude oil prices of close to $40 a barrel and massive profit-taking from the big oil companies. First quarter profits for ConocoPhillips were up 44 percent. Exxon-Mobil reported a 125 percent increase, and Chevron-Texaco hit a gusher with a 294 percent increase.

Etheridge called on President Bush to immediately insist that OPEC boost production and to suspend deliveries to the Strategic Petroleum Reserve (SPR). Recent reports show that the SPR is being filled at more than twice its normal level, taking 300,000 barrels per day out of the marketplace. Etheridge also supports legislation to make it easier for the President to tap the Strategic Petroleum Reserve on a temporary basis to meet the short-term needs for greater fuel supply and to allow the President to reduce, suspend, or terminate any assistance under the Foreign Assistance Act of 1961 and the Arms Export Control Act to each country determined to be engaged in oil price fixing to the detriment of the United States' economy.

According to Fortune Magazine, gas price increases since the beginning of the year have cost American consumers $35 billion. If gas prices stay high, as experts predict, consumers will lose another $50 billion over the next year due to higher prices at the pump.

Rising gas prices translate into higher prices on consumer goods and services across the board, further squeezing family budgets by ratcheting up the cost of groceries, travel, and countless other manufactured goods. A recent National Retail Federation survey found that nearly 20 percent of families with annual incomes below $50,000 reported that they had to cut back on grocery spending due to higher gas prices. Among families earning over $50,000 a year, more than one quarter reported that they had cut back on travel, and 15 percent spent less on clothing for their families.