03.06.06

Cantwell Calls for Investigation to Uncover Facts Behind Years of Rising Fuel Costs

Senator requests inquiry to clarify effects of market transparency, refining capacity, and fuel inventories on gas price volatility

WASHINGTON, DC – Monday, U.S. Senator Maria Cantwell (D-WA), Senate Democrats’ point person on energy issues, joined Senator Daniel Inouye, Ranking Member on the Senate Commerce Committee, to call for a thorough investigation of rising fuel costs.

“Working families across our country need relief from the sky-high fuel costs they continue to face at the gas pump and in home heating bills,” said Cantwell, a member of the Senate Energy and Commerce Committees. “We need answers. This isn’t new, and this isn’t just a post-hurricane spike. It’s about understanding the fundamental dynamics of fuel markets. For years now, we’ve watched prices rise and volatility increase. We need to figure out what’s behind it and deliver Americans a better, more stable energy future.”

In a letter to the Government Accountability Office (GAO), Inouye and Cantwell called on the agency to conduct a comprehensive investigation into fuel inventory practices, refining capacity, and market transparency. Much of the senators’ request attempts to get answers to questions oil companies refused to address or provide data on at hearings last year.

“The rise in prices of gasoline, diesel fuel, home heating oil, and other petroleum products following Hurricanes Katrina and Rita have cast a spotlight on numerous issues central to the energy security of the United States,” the senators wrote. “While these tragic storms had an acute impact on consumers across the nation, we are also aware that recent years have demonstrated a steady-run-up in fuel costs, marked by increasing dependence on foreign sources of energy and prolonged periods of price volatility.”

Unleaded regular gasoline rose from $1.36 per gallon in 2002 to $2.32 in January 2006. During the same time period, diesel rose from $0.86 to $1.99 per gallon, and home heating oil jumped from $1.13 to $2.30 per gallon.

Cantwell is the chair of the Senate Democrats’ Energy Independence 2020 national campaign, working to break America’s overdependence on foreign oil, to protect working families from skyrocketing energy costs, and to stop unfair market manipulation by energy companies. Cantwell is fighting to stop price gouging, provide relief from high home heating costs, and invest in reliable sources of affordable fuel.

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