Bush diverting oil from reserve to gas pumps

Taking aim at tax breaks
Bush, in his speech, urged Congress to revoke about $2 billion in tax breaks over 10 years that Congress approved and he signed into law to encourage exploration. “Taxpayers don’t need to be paying for certain of these expenses on behalf of the energy companies,” Bush said.

He also urged lawmakers to expand tax breaks for the purchase of fuel-efficient hybrid automobiles.

The president said Democrats in the past have urged higher taxes on fuel and price caps to control fuel expenses, but he said neither approach works. Instead, he called for increased conservation, an expansion of domestic production and increased use of alternative fuels like ethanol.

Bush said high energy prices are disturbing.

Bush condemns ‘addiction to oil’
“Our addiction to oil is a matter of national security concern,” the president said in a speech to the Renewable Fuels Association, which advocates alternate energy sources. “After all, today we get about 60 percent of our oil from foreign countries. That’s up from 20 years ago, where about 25 percent of our oil came from foreign countries.”

Bush said gasoline prices are expected to remain high throughout the summer and “that’s going to be a continued strain on the American people.”

Bush said the Federal Trade Commission, the Justice Department and the Energy Department were investigating whether the price of gasoline has been unfairly manipulated. The administration also contacted all 50 state attorneys general to offer technical assistance to urge them to investigate possible illegal price manipulation within their jurisdictions.

During the last few days, Bush asked his Energy and Justice departments to open inquiries into whether the price of gasoline has been illegally manipulated.

It’s unclear what impact, if any, Bush’s investigation would have on prices that are near or at $3 a gallon or more. Asked if Bush had any reason to suspect market manipulation, White House press secretary Scott McClellan responded, “Well, gas prices are high right now, and that’s why you want to make sure there’s not.”

Checking for price gouging
The administration sent letters Tuesday to state attorneys general urging them to vigorously enforce state law “against any anticompetitive, anticonsumer conduct in the petroleum industry.”

POLITICAL CARTOONS Cartoon round-up from Daryl Cagle

“Consumers around the nation have expressed concerns about what they have perceived as anticompetitive or otherwise unfair conduct by the world’s major oil companies,” said Attorney General Alberto Gonzales and Federal Trade Commission Chairman Deborah Platt Majoras. Their letter said federal agencies had substantially increased efforts to monitor, detect and prevent any violations of the law.

House Speaker Dennis Hastert, R-Ill., and Senate Majority Leader Bill Frist, R-Tenn., urged Bush in a letter Monday to order a federal investigation into any gasoline price gouging or market speculation.

“There is no silver bullet,” Frist said Tuesday on ABC’s “Good Morning America,” but “we need to make sure that any efforts at price-gouging be addressed and addressed aggressively.” Meanwhile, Frist said, consumers should take steps to conserve gasoline — drive at slower speeds, tune up car engines for maximum efficiency and carpool.

Senate Democratic leader Harry Reid of Nevada dispatched his own letter, calling for a multi-pronged approach to restrain gas prices.

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