ATA Urges Bush to Consider Tapping Oil Reserves

In a Jan. 13 letter to the White House, the American Trucking Associations urged President Bush to take steps, including possibly tapping the Strategic Petroleum Reserve, to help stem the tide of rising fuel costs.

"I would like to bring your attention to the rapidly escalating diesel fuel prices nationwide and the devastating effect they can have on the trucking industry," wrote ATA President William J. Canary. "According to the U.S. Department of Energy, the price of diesel fuel is currently averaging more than $1.50 per gallon nationwide, the highest level in more than a year. Additionally, diesel inventories are well below last year’s levels."

According to a report released Monday, the national average price of diesel fuel fell 2.3 cents a gallon to $1.478. Despite the decline, diesel prices are still 31 cents higher than they were at the same time last year.

In his letter, Canary cited concerns about a possible supply crunch.

"To add to those concerns, the Energy Information Administration within the U.S. Department of Energy recently reported that the oil market is vulnerable to a number of forces that could cause substantial price volatility over the coming months, including the situation in Venezuela, increased tensions in the Middle East, and low oil inventories," Canary said. "This makes me believe that unlike the last time diesel prices reached their current levels, we are more likely to see higher prices than lower ones in the future."

Canary asked the president to monitor the situation, and to take appropriate steps to control fuel prices – including potentially opening up the Strategic Petroleum Reserve.

Canary's plea came just a few days after a letter he sent offering ATA’s support for President Bush's economic plan.

(Click here for full text of the letter.)

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