Governor M. Jodi Rell announced today that 21 of her fellow Governors have co-signed her letter to the congressional leaders of both parties asking for federal hearings and an investigation into the rising price of gasoline. The letter was delivered to Capitol Hill today, coinciding with news that gas prices have hit an all-time high in Connecticut and the nation.
“We are demanding answers on the gas price spikes that are hurting the consumers and the economies of our states,” Governor Rell said.“This is a national issue. The fact that so many of my colleagues have joined me in calling upon Congress to act sends a clear message that the governors across the country want and deserve answers on behalf of our citizens.”
With gas prices for a gallon of gasoline in both Connecticut and the nation reaching record-high levels, Governor Rell and the other governors are concerned with the financial impact on families, businesses and their states’ overall economies.
In the letter to Congressional leaders, the governors requested that the issue of refining capacity be examined, particularly with regard to the under-utilization of domestic refining capability due to scheduled maintenance.
“It makes no apparent sense to shut down refineries for maintenance as the summer driving season approaches,” Governor Rell said. “Our letter to Congress makes the point that it is unconscionable that investments in refineries to address reliability issues have not been made even while oil companies are making record profits each quarter.”
The average price for a gallon of regular gas on May 20 in Connecticut was $3.26 and the national average was $3.20.The price is up 35 cents from a month ago and up nearly a $1.00 over the past five months.
“That’s a 40 percent spike in less than five months,” Governor Rell. “People want to know why this is happening.We are beyond frustrated.We are angry.We want answers as to why prices at the pump continue to escalate in the absence of new seasonal, weather or world events.With two weeks to go before the official start of the summer driving season, I believe we are owed a federal answer as to why prices have blown past the $3 a gallon mark and why they appear to be headed toward $4 a gallon.”
On Friday, May 18th, Connecticut’s Congressional delegation also requested an investigation into rising gas prices in a letter to the Comptroller General of the Government Accountability Office (GAO), David M. Walker. On May 1st, Governor Rell asked the Connecticut delegation to join her in seeking a “quick and thorough” investigation.
In March, Governor Rell urged the state legislature to help provide relief to consumers by acting on her proposal to cap the gross receipts tax on gasoline and other petroleum products when the wholesale price of a gallon of gas hits $1.75.The Governor noted that capping the gross receipts tax at $1.75 per gallon guarantees the continued income the state needs to fund the transportation improvements approved over the last two legislative sessions.Because of rising gas prices, the wholesale price of gasoline in Connecticut now stands at $2.30.
Governor Rell also called for the scheduled increase in the gross receipts tax to be rolled back. The tax rate is slated to rise to 7.0 percent on July 1st.
Governor Rell has outlined several other shorter-term ideas for relief from higher prices, including the elimination of zone pricing for gasoline in the state.The Governor has also offered an array of long-range plans aimed at strong progress on energy consumption and conservation by 2020.
