Republican leaders have called for repeal of the 4.3 cent a gallon gas tax passed in 1993 as part of a deficit reduction package. So gasoline has never been higher, and one way to lower that price is to repeal the gas tax, the Clinton gas tax, 4.3 percent. Yesterday, President Clinton directed the sale of oil from the nation's emergency reserves. I instructed the Secretary of Energy to immediately begin the orderly sale of about 12 million barrels of our nation's strategic petroleum reserve to try to moderate the price of fuel. In California, state officials held hearings today and last week calling the oil industry to account.
Oil companies say a combination of factors have driven up gasoline prices.
They say as a result of the cold winter, refineries produced more heating oil at the expense of gasoline. That reduced the supply of crude oil. The oil companies let supplies dwindle in anticipation of the possibility of cheaper oil coming in from Iraq later this year. In the meantime, crude oil from other sources increased in price and is now as expensive as it's been in five years. Government actions have also added to the price of gasoline, according to the industry.