Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

Independent Student Newspaper Since 1969

The Badger Herald

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Kohl wary of spiking gas prices

A recent sharp rise in gasoline prices throughout the Midwest has caused concern among its states representatives in Washington, D.C.

U.S. Sen. Herb Kohl, D-Wisconsin, along with Sen. Mike DeWine, R-Ohio, contacted the Federal Trade Commission Friday to express their concern about the recent sharp increases in gas prices in places in the Midwest.

The senators asked the FTC to “carefully monitor, and, when appropriate, investigate” any possible anticompetitive or anti-consumer practices of gas stations.

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DeWine cited the increase in the price of a gallon of gasoline in Akron increased by 25 cents in a matter of hours and 12 cents in a single day in Columbus. Kohl cited the price of a gallon of gas in Milwaukee as having increased by a quarter dollar last week to a price almost seventy cents more than last year at this time.

“Consumers in Midwest and across the country who have been burdened by high gas prices are entitled to know whether they are being subjected to anticompetitive and anti-consumer practices that would spike gas prices even further,” said Kohl, who is a member of the Senate Judiciary Antitrust Subcommittee.

Kohl’s deputy press secretary Zach Goldberg said the senators’ action wasn’t spurred on by any specific instances, just a concern over higher prices.

“There wasn’t a special case, the action was just to alert the FTC that prices have spiked and that it’s an ongoing problem,” Goldberg said. “Sen. Kohl believes there are many factors contributing to the rise of gas prices.”

Goldberg said growing tensions in the Middle East as the United States increases its military presence in the area in preparation for possible war action against Iraq was “certainly one of the factors” impacting gas prices, but that the senator’s main concern was possible monopolistic actions.

DeWine, who is chairman of the Senate Antitrust Subcommittee, said the letter was “simply to restate the need for monitoring of this problem.”

“I intend to do everything within my power to protect consumers in the state of Ohio and throughout the Midwest from being taken advantage of by anyone in the gasoline supply chain who might try to profit from the threat of war,” DeWine said.

“[Sen. Kohl] wants the FTC to pay attention to this trend and possibly investigate the causes,” Goldberg said. “In the past, there have been instances where there has been anticompetitive trust-like practices going on in regards to gas prices.”

Kohl has drawn similar attention to the Midwest’s gas prices for the last few years. Last March, Kohl asked the Environmental Protection Agency to respond to gas prices increasing. Gas prices have spiked in the last three springs when gasoline formulas are switched from winter to summer blends and oil refineries decrease production to perform maintenance.

GasPriceWatch Incorporated runs the website GasPriceWatch.Com, which uses neighborhood spotters to monitor gas prices nationally. The website witnesses reported the average price of gas was $1.70 per gallon, with the price getting as high as $2.26 at a station in South Lake Tahoe, Calif.

When Gov. Jim Doyle presented his budget to the Wisconsin legislature, he said gas prices would not increase in the state because of increased taxes on gasoline.

Wisconsin currently taxes 31.3 cents for every gallon of gasoline sold, putting it among the highest in the nation in gas taxes. The state’s motor fuel tax is automatically increased with the rate of inflation every year.

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