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NM senators want hearing on oil, gas prices
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By JENNIFER TALHELM / Associated Press
August 20, 2005

WASHINGTON (AP) - New Mexico Sens. Jeff Bingaman and Pete Domenici say they want to find a solution to skyrocketing gas prices by examining what is driving costs as high as $3 a gallon in parts of the country.

Domenici, the Republican chairman of the Senate Energy and Natural Resources Committee, and Bingaman, the committee's leading Democrat, on Friday announced they will hold a Senate committee hearing on the issue Sept. 8.

Experts will talk about whether global oil demand, increased speculation in the futures market or price gouging are contributing to the problem.

The senators say they hope that will help Congress take action to bring prices down.

"All of us recognize the financial hardships that rising gasoline prices are causing to Americans, especially working families, and how these prices are hurting our businesses and our communities," Bingaman said in a news release. "We need to have the very best advice and counsel on what actions can be taken to help lower the cost of gasoline."

According to the senators, the average retail price for regular gasoline increased by 18.2 cents the week of Aug. 8, the largest one-week increase on record. It brought the average price of gas to $2.55 per gallon _ 67.5 cents higher than the same time a year ago.

Prices are not expected to drop much through the end of the year, according to the Energy Information Administration.

The senators' announcement comes just weeks after Congress approved a sweeping energy policy that President Bush signed in Albuquerque.

When it passed, Domenici said it would not immediately lower gas prices or affect oil imports.

The federal policy offers incentives for energy producers from nuclear to wind power and encouraged companies to find new sources of energy.

Domenici said Friday that he owes it to the taxpayers to investigate gas prices.

Steep gas prices crimp spending and blunt consumers' confidence in the economy, he said.

If Congress is going to act, it first has to understand what is causing the problems, he said.

"We have to find out if there is any gouging, and we have to try to predict what the future looks like," he said. "I don't know if these hearings are going to find solutions, but we need to get (the issues) on the table."


http://www.freenewmexican.com/