September 22, 2005
Governor’s Column
By Governor Matt Blunt
Gas Prices and Ethanol
With the recent spikes in the price of gas I like many Missourians am concerned. As governor I have taken several steps in an attempt to avert shortages of gasoline available in Missouri and to help combat high prices.
Following the devastation of Hurricane Katrina I asked Attorney General Nixon to investigate the possibility of price gouging across our state. Let me emphasize I believe most merchants in our state are good people who are trying to sell a competitive product in a volatile market. I was pleased that the attorney general shared my concerns about the potential of price gouging and moved forward with an investigation.
I also sent letters to the Attorney General of the United States and the Federal Trade Commission asking them to investigate the wholesale oil industry to ensure the price of fuel was not artificially inflated.
In addition, I issued a state emergency fuel waiver to compliment the federal waiver. The waiver provided more options for fuel suppliers, which helps reduce the possibility of a gasoline shortage.
The recent spike in gas prices drives home the point that we need to reduce our dependency on foreign oil. That is why I am a strong advocate for a ten percent ethanol requirement for all gas that is sold in Missouri. During the next legislative session passing an ethanol standard for our state will be one of my top priorities. Not only will an ethanol standard help lower gas prices for Missourians but it will also add new economic development opportunities for Missouri farm families and the agriculture industry.
Finally I would like to address the idea about a fuel tax holiday. I believe most Missourians are now starting to see that this proposal is nothing more than a political gimmick. Missourians made clear when they enacted Amendment 3 that they prefer the money raised by the gas tax to go to road, highway and bridge improvements. The state is bonding based on Amendment 3 in order to accelerate these projects. Irresponsible management decisions with money used to build highways could threaten public safety and the completion of promised projects in every region of our state.
I am committed to leading the effort to find long-term solutions that will help bring down the price of gas and ensure badly needed road and bridge improvement projects can continue.