Story Published:
Sep 20, 2005 at 8:27 AM PST
Story Updated:
Aug 31, 2006 at 1:04 AM PST
MADISON, WIS. - Gov. Jim Doyle and seven other Democratic
governors, including Washington's Christine Gregoire, sent a letter
to President Bush and congressional leaders Tuesday demanding
Congress investigate possible gas-price gouging in the wake of
Hurricane Katrina and refund any ill-gotten profits to consumers.
The letter cited a study by University of Wisconsin-Madison
economist Don Nichols that found the hurricane was not fully to
blame for high gas prices. The study estimated that for gas prices
to reach $3.00 a gallon, the price of crude oil would have to be
about $95 a barrel. Currently, however, crude prices have been
holding at around $65 a barrel, and Katrina hasn't led to a surge
in crude oil prices, Nichols said.
Doyle told reporters the state Department of Administration
estimates Wisconsin consumers have been overcharged $88 million
this month.
According to department estimates, the average price of gas in
Wisconsin in August before Katrina hit was $2.50 a gallon. The
average price of gas for September is estimated at $2.90.
The agency forecasts that consumers will purchase 222 million
gallons of gas in September. The number of gallons multiplied by
the difference in the average price between August and September -
about 40 cents - equals about $88 million, said Doyle spokeswoman
Melanie Fonder.
Jim Rink, a spokesman for the American Automobile Association,
said many factors play into the price of gasoline, such as state
gas taxes and retailers who raise prices to drive down demand and
preserve low inventories.
He said he would rather see different states' attorney generals
or the Federal Trade Commission start an investigation.
Also signing the letter were Govs. Rod Blagojevich of Illinois;
Jennifer Granholm of Michigan; Ted Kulongoski of Oregon; Bill
Richardson of New Mexico; Brian Schweitzer of Montana; and Tom
Vilsack of Iowa.
A message The Associated Press left at the White House press
office wasn't immediately returned. Messages The AP left at Senate
Majority Leader Bill Frist and House Speaker Dennis Hastert's
offices also weren't immediately returned.