News From the
Committee on Small Business
Subcommittee on Investigations and Oversight
Jason Altmire, Chairman

For Immediate Release
April 9, 2008          

CONTACT: Tess Mullen (Altmire), 202-225-2565, Gail O’Connor / Jaime Zapata (SBC), 202-226-3636

Subcommittee Examines Impact of

Rising Gas Prices on American Small Businesses

WASHINGTON, D.C. — Entrepreneurs drive our economic growth, but that may change if rising gas prices continue to impact their bottom lines.  Last month, the average cost of regular unleaded gasoline hit a record average price of $3.29 per gallon—with more increases likely.  That poses a severe strain on the nation’s small businesses, whose operating margins are tighter than their larger counterparts.  Today the Subcommittee on Investigations and Oversight, chaired by Congressman Jason Altmire (PA-4), heard testimony from a panel of expert witnesses and examined the impact that rising fuel prices are having on small firms.

“Rising gas prices are contributing to the economic slowdown, straining the pocketbooks of hardworking families and the bottom lines of small businesses. Given that small businesses are our nation’s single largest employer, we need to do everything we can to make sure they thrive,” Altmire said. “I hope that by shedding light on the costly toll that high gas prices are taking on small businesses, this hearing will help identify additional ways for us to take action and provide relief. There is no time to lose in implementing polices that will drive down gas prices in the short term and increase our energy security in the long term.”

Witnesses at the hearing described how entrepreneurs in such industries as trucking, plumbing, and even assistive and rehabilitative services are being impacted by unforeseen hikes in energy costs.  They also explained that the only way many can cover these increased costs is by foregoing any investment in capital or the planned expansion of their business.  This would limit job growth at a time when the economy needs it most.

According to a recent survey of small firms, the rising cost of energy is the number one concern among U.S. entrepreneurs.  Last year, Chairman Altmire and the members of the Small Business Committee helped pass historic legislation to aid small business owners in the purchase of energy efficient technologies.  The provisions were signed into law as part of The New Direction for Energy Independence, National Security, and Consumer Protection Act. 

Click here to view list of witnesses and testimony.
Click here to view video highlights of the hearing.

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