Levin Urges President to Support a Temporary Freeze on Gasoline Prices Until Supplies are Restored to Pre-Hurricane Levels

WASHINGTON – Sen. Carl Levin, D-Mich., today called on President Bush to support a temporary freeze on the price of gasoline, heating oil, diesel fuel and jet fuel at their levels just prior to Hurricane Katrina. Levin proposed that the price freeze remain in effect until supplies are restored to pre-hurricane levels. Levin also urged the President to direct the federal government to implement near-term conservation measures.

“These price spikes are causing severe hardships for the millions of Americans who depend upon affordable and adequate supplies of gasoline for many of life’s necessities, including transportation to and from their jobs, schools, health care, and daily needs. Immediate action must be taken to temporarily freeze gasoline prices and to conserve existing supplies,” Levin wrote.

Full text of the letter follows.

September 2, 2005

The President
The White House
Washington, DC 20500

Dear Mr. President:

In light of the unprecedented damage to U.S. refineries caused by Hurricane Katrina, I am writing to request that you support a temporary freeze on wholesale and retail gasoline prices at their levels just before the hurricane. I also request that you direct the federal government to implement near-term gasoline conservation measures.

The disruption in gasoline supplies has caused large spikes in the price of gasoline, which already had reached record highs in the days before the hurricane. These price spikes are causing severe hardships for the millions of Americans who depend upon affordable and adequate supplies of gasoline for many of life’s necessities, including transportation to and from their jobs, schools, health care, and daily needs. Immediate action must be taken to temporarily freeze gasoline prices and conserve existing supplies.

I therefore urge you to work with the Congress to impose a temporary freeze on wholesale and retail gasoline prices at their levels just prior to Hurricane Katrina. The temporary freeze should remain in place until supplies are restored to pre-hurricane levels.

I also urge you to direct the federal government to implement near-term conservation measures, as well as work with Governors of affected states to implement similar conservation measures at the state level. Such conservation measures could include, for example: use of public transportation for official business; increased incentives for employees to use public transportation or carpooling for commuting to and from work; and alternate-day purchasing for filling-up vehicles (e.g., vehicles with odd-numbered license plates can fill up only on odd-numbered days of the month).

The shutdown of refinery capacity also threatens this nation’s supply of heating oil, diesel fuel, and jet fuel. I urge you to work with the Congress to impose a temporary freeze on price increases in these critical energy commodities, and with the Governors to conserve these fuels.

Thank you for your consideration of this urgent matter.

Sincerely,

Carl Levin