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Congresswoman Jan Schakowsky, Ninth District, IL
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Press Release 
MAY 14, 2001
 
SCHAKOWSKY 
REPEATS CALL ON BUSH ADMINISTRATION TO GIVE CONSUMERS RELIEF AT THE GASOLINE PUMP
 
CHICAGO, IL – U.S. Representative Jan Schakowsky (D-IL) today repeated her call on the Bush Administration to give consumers in her district and the Midwest relief from high gasoline prices at the pump.  During a conference call with members of the press, Schakowsky said that “President Bush can act to stop price gouging by jawboning his friends in the oil and gas industry,” and that his plan to drill our way out of the energy crisis will not help lower prices during this summer’s driving season.

“For the second year in a row, my constituents are paying some of the highest prices in the country for gasoline after spending a fortune to heat their homes with natural gas this winter.

“In anticipation of a recurrence of gasoline price spikes in my district, we kept track of gas prices at local stations.  On March 30th, the price for a gallon of regular gasoline just a few blocks from my office was $1.80.  Today, at that same station, the price is $2.25.  A $.45 cent per gallon increase in less than two months.  Unfortunately, I have seen no indication that these prices are going to go anywhere but up in the near future, and that has me seriously concerned.  

“While big oil is getting bigger, consumers in my district and across the country are getting gouged.  We need some relief now.  The Bush Administration has said that there is nothing that they can do to help consumers in the short-term, but that the only strategy is long-term. We know that isn’t true. The President can act to stop price gouging by jawboning his friends in the oil and gas industry and, if that doesn't work, sending legislation to Congress to get relief now.

“We know that big oil has played a role in the price spikes and we know they are just making business decision to maximize their profits.  While the Federal Trade Commission report that I requested with my colleagues did not find criminal collusion, it did find that “each industry participant acted unilaterally and followed individual profit maximization strategies”.  

“Robert Pitofsky, then Chairman of the FTC said, “we did find that three oil companies cut back production in February, and as a result, there was less gasoline available last summer than the year before.  And we found that one company had extra gasoline, but held it off the market because they didn’t want to drive prices down, even though they were extremely high at the time.”  So while these oil and gas companies may not be in the same room conspiring together, they have certainly figured out on their own how to gouge consumers.  And they are at it again this year.  

“Unfortunately, we have an Administration that is coming at this problem from a much different perspective.  The oil industry helped put President Bush in office.  I don’t think we can expect a President that took almost $2 million in contributions from oil companies and executives to do anything to cut into those companies’ profits. 

“The Republican Party received over $25 million from big oil with Enron and Exxon-Mobil giving the most. And let’s take a look at big oil’s representation inside the Bush White House-starting with President Bush who we know was founder and CEO of an oil company in the past. And Vice President Cheney who left his job as CEO at Haliburton to lead the nation’s energy policy.  Condoleezza Rice was on Chevron’s board; Gale Norton began her career at a think tank funded by big oil; the Deputy Interior Secretary lobbied for big oil; Commerce Secretary Don Evans was President and CEO of a Texas oil company; and the under-Secretary of Commerce, Kathleen Cooper was a chief economist at Exxon-Mobil.  The list goes on but it is clear that this is an Administration that has a clear bias on this subject.  

“That is why I am renewing my call, which I made to the President before he took office, to use his close ties to the industry and demand a reduction in gasoline prices.   I am anxious to see the Administration’s plan.  But I am not getting my hopes up that it will include any relief for my constituents and the prices they are being forced to pay for gasoline.”

 
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