Senate Energy and Natural Resources Committee Chairman Pete V. Domenici and ranking Senator Jeff Bingaman today announced the September hearing on the rising cost of gasoline.  The purpose of this hearing is to examine gasoline prices and factors contributing to current high prices such as global oil demand, constraints on refinery capacity, and increased speculation in the futures market. 

The full committee hearing is scheduled for 2:30 p.m.Tuesday, Sept. 6, in a room to be determined at a later date.  Witnesses will be announced Sept. 2 and will subsequently be posted on the committee website at http://energy.senate.gov/public//.

According to the Department of Energy’s Energy Information Administration, during the week of August 8-15, the U.S. average retail price for regular gasoline increased by 18.2 cents, the largest one-week increase on record, to $2.55 per gallon, the highest nominal price ever recorded.  This is 67.5 cents higher than the same time last year.

On average, gasoline demand in the United States is about 9 million barrels a day, which is roughly 380 million gallons of gasoline a day.  Every one penny increase in the price of gasoline means about $3.80 million dollars a day more in gasoline expenses nationally – that is $1.39 billion more a year for each extra penny . 

Chairman Domenici’s statement:

“Today’s gasoline prices are taking a severe toll on Americans’ pocketbooks.  Consumers are anxious. They pull up to a gas pump and they are stunned by the prices. Economists are concerned. Steep energy prices like we are seeing crimp consumer spending and blunt their confidence in the economy.

“While there is no immediate solution to lower the price of gasoline, this hearing is a start.  I look forward to hearing from government, industry, and consumer groups on how to address the challenge of spiraling gasoline prices and the contributing factors.”

Senator Bingaman’s statement:

“All of us recognize the financial hardships that rising gasoline prices are causing to Americans, especially working families, and how these prices are hurting our businesses and our communities. Clearly, we need to have the very best advice and counsel on what actions can be taken to help lower the cost of gasoline.  I very much look forward to listening to what the experts have to say at this important hearing.”