Gas Prices Fire Up Political Debate

The rising price of gasoline has become a handy political issue for Republicans and Democrats.

Republicans, led by presumed presidential nominee Bob Dole, want to repeal a 4.3 cent federal tax they pay for each gallon of gasoline.

President Clinton, using his office to take immediate action, Monday ordered release of 12 million barrels of oil from the Strategic Petroleum Reserve.

“The president is very concerned about these spikes in oil prices at the pump,” White House spokesman Mike McCurry said.

The president also asked Energy Secretary Hazel O’Leary to review market conditions and report within 45 days “about the factors that led to the run-up in prices” and about expectations for the summer.

Asked about Dole’s push to repeal the gas-tax hike, chief of staff Leon Panetta said Sunday that “we’re prepared to discuss it,” but only as part of overall budget negotiations.

Gasoline prices are at their highest level since the Persian Gulf War. The average price of a gallon of regular unleaded gasoline was $1.27 as of April 23, up 10 cents from a month before, according to the American Automobile Association (AAA). Subtracting all taxes means that the price of gasoline rose to 85 cents from 75 cents, a rise of 13 percent.

Dole’s tactic is the leading edge of an emerging Republican strategy to turn political debate back toward subjects of their choosing - such as broader tax reform, crime control and overhauling welfare - and away from topics favored by Democrats, such as Medicare, education and the environment.

But Democrats like gas taxes as a political topic, too.

Connecticut’s two Democratic senators, Christopher Dodd and Joseph Lieberman, asked last week that U.S. Attorney General Janet Reno investigate the “large increases in gasoline prices during the past year.”

Other members of Congress are scheduling hearings on the price rise with an eye toward forcing oil companies to explain the price increases in relation to their profits.

The bulk of federal taxes on gasoline go to highway construction, but the 1993 tax goes for general federal spending and has raised $11.27 billion, Texas Sen. Phil Gramm, a Republican, said. The 1993 tax was supposed to raise up to $23 billion through 1998.