PANEL WILL EXAMINE GASOLINE SUPPLY, DEMAND, AND COMPETITION

Washington, Sep 2, 2005 - "Although Hurricane Katrina has caused a sharp spike in the cost of gasoline, the price of gasoline has been steadily increasing since the spring of 2004," said Rep. Cliff Stearns (R-FL), Chairman of the Commerce, Trade & Consumer Protection Subcommittee.  "The rising cost of gasoline is hurting American consumers and could hamper continued economic growth.  I will hold a hearing this month to examine the factors driving this increase in gasoline prices."

"A number of factors contributed to this increase; production quotas by OPEC, strong demand for oil in China, and supply disruptions in Venezuela, Iraq, and Nigeria," explained Stearns.  "However, I want to look at a number of other factors affecting the price of gasoline such as supply and demand, competition in the industry, and federal, state, and local regulations.  In addition, I want to see if price gouging and other anticompetitive conduct are factors."

Stearns also will participate in the full Energy & Commerce hearing on dealing with the impact of Katrina on the cost of gasoline.  "Nearly one-quarter of our domestic oil production and a large part of our refining capacity have been shut down by the storm," added Stearns.  "We will be looking at the possibility that unscrupulous retailers took advantage of the storm to unfairly hike prices above market conditions."  The full Energy & Commerce hearing will be held on Wednesday, September 7th at 2:00 p.m. in 2123 Rayburn.