REPORT: Gas Crisis To Cost Ohio Families $2,963 This Year

Brown Proposes Steps to Relieve Pain at the Pump, Move Toward Energy Independence

YOUNGSTOWN--Congressman Sherrod Brown (D-Lorain County) today released a report on Ohio's gas crisis and offered ways to reduce costs to consumers. Speaking by a gas station in Youngstown, Brown addressed the effect of skyrocketing fuel prices on the lives of Ohio drivers.

"As the summer driving season begins, soaring gas prices will force many Ohio families to make painful sacrifices, working ever-longer hours and canceling visits to loved ones," Brown said. "For too long, President Bush and Republicans in Congress have chosen the side of the oil companies. It is time to stand up for middle class families."

The report finds that:

• Compared to 2000, the average two-car family in Ohio will pay approximately $1,563 more for gas this year. The indirect costs of higher energy prices, in the form of higher costs for goods and services, will cost the typical family another $1400, making for a total cost of $2963.


• In 2001, it took a minimum wage worker in Ohio 5.4 hours to earn enough to fill their gas tank.  In May 2006, it would take almost twice as long, 10.7 hours of work, to fill a single tank of gas.


• Last year, the top six oil companies took in profits of $113 billion. Meanwhile, oil and gas companies have spent nearly $450 million in the last six years to protect their interests in Washington. In the course of his career, Republican incumbent Senator Mike DeWine has received $338,817 in campaign donations from the oil and gas industry.

In the past month, gas prices shot past $3 per gallon in many parts of the country. Some analysts now predict that prices at the pump could hit $5 by mid-summer.

"The oil companies wrote the energy bill, and now Ohio drivers are paying for their record profits," Brown said. "Ohioans shouldn't be squeezed to make the richest companies in the world even richer."

DeWine voted for the GOP energy bill, which provided billions of dollars in subsidies for oil and gas companies.

Brown highlighted a range of options for immediately reducing the burden of fuel costs.

"Congress must stop guzzling gas-company campaign dollars, and stand up for Ohio families" Brown said. "We need to crack down on oil-company price gouging, cancel unneeded subsidies for companies like Exxon, and give consumers a holiday from gas taxes."

The U.S. Senate has yet to act on price-gouging legislation approved last week by the House.

A gas tax holiday would immediately reduce prices at the pump by 18 cents.

Brown, who has made alternative energy a core component of his economic platform, also underscored the need for longer-term solutions to the energy crisis.

"It is time to invest seriously in renewable energy," Brown said. "Transitioning to bio-fuels, hybrid technology, and other alternative energy sources can strengthen our national security, lower gas prices, and create good-paying jobs. With our skilled workforce and strong manufacturing base, Ohio could become the Silicon Valley of alternative energy development."

Click here to read the full report.

05/30/2006 / Permalink / Economy, gas, (all tags)