ATA Urges President to Take Action on Diesel Fuel Price Increases

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ATA Urges President to Take Action on Diesel Fuel Price Increases

January 26, 2000

The President The White House Washington, D.C. 20500

Dear Mr. President: The Nation faces an economic crisis as a result of the huge and unwarranted hikes in the price of diesel fuel. A year ago the national average price of diesel fuel was $0.964 per gallon; today it is $1.418 per gallon -- a 47% increase in one year. In the last week, the price leapt from $1.307 to $1.418 per gallon, a staggering increase of 8.5% in a single week. This cannot continue if America's economic health is to be preserved.

The national diesel fuel crisis has a direct and strong adverse impact on the American trucking industry, because trucks move most of America's freight, and diesel moves most of America's trucks. Unless the Federal Government acts promptly to combat the drastic increases in the price of diesel fuel, the transportation backbone of the American economy -- the trucking industry that accounts for 81% of the country's freight revenue -- will break.

On behalf of the thousands of motor carrier members of the American Trucking Associations, Inc., I request that you take the following actions immediately, in addition to such other actions as may be appropriate, to deal with the diesel price emergency and restore reasonable price stability at lower price levels in the diesel markets: 1. Direct the Secretary of Energy to take such action as may be necessary to draw down and distribute sufficient quantities of petroleum from the United States Strategic Petroleum Reserve. This approach to the diesel price emergency -- a prompt increase in supply -- will help the free market correct diesel price inequities promptly. 2. Direct the Secretary of State to enter into discussions on an emergency basis with the countries that are members of the Organization of Petroleum Exporting Countries, to ask that cartel to free its members to increase oil production. The Secretary should make a special effort to seek an oil production increase by the countries on the Arabian Peninsula, whose continued existence and current prosperity is due to the decision of the United States to send a half million troops to their defense only a decade ago. Such an increase in production will help in the longer run in the effort to correct diesel price inequities. 3. Direct the Secretary of Defense and the Administrator of General Services to take such action as may be necessary to incorporate into the Government's truck transportation contracts provisions for payment by the Government of a surcharge to cover the costs of diesel fuel increases. 4. Ask the Attorney General of the United States to commence an investigation into any illegal diesel price gouging and profiteering.

America has enjoyed an unparalleled period of prosperity in the past decade. To continue that prosperity, avoid disruptions in America's most vital transportation industry, and forestall a return to the ravages of inflation, prompt action by your Administration to solve the diesel crisis is essential. Sincerely,

Walter B. McCormick, Jr.

cc: The Secretary of State, Washington, D.C. 20520 The Secretary of Defense, Washington, D.C. 20301 The Attorney General, Washington, D.C. 20530 The Secretary of Energy, Washington, D.C. 20585 The Administrator of General Services, Washington, D.C. 20405

link to story:

http://www.truckline.com/insideata/press/012600_fuelprices.html

-- Carl Jenkins (Somewherepress@aol.com), January 27, 2000


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