Donnelly announces plan to cut gas prices

by Leanne Tokars (ltokars@wsbt.com)

Tools

Congressman Joe Donnelly announced his plan to bring gas prices down by at least 25 cents per gallon. (WSBT file photo)

By Beth Boehne

Story Created: Apr 25, 2008 at 5:13 PM EST

Story Updated: Apr 29, 2008 at 6:58 AM EST

SOUTH BEND — Rising gas prices hit another record high this week. Congressman Joe Donnelly announced his plans Friday to bring those prices down. He has sent a letter to the president with a plan he says could bring prices down by at least 25 cents per gallon.

Multimedia

Watch The Video

His focus is the Strategic Petroleum Reserve.

At $3.63 a gallon, filling up can hurt.

“It's not a good situation and it cost me about $500 per month just to gas it,” said Julie Keyser of her SUV. “It's a lot."

Prices are only expected to get higher — some predict over $4 a gallon.

"It's the most of I've paid — it's like $50 — and it's a sedan,” said Dennis Marion of his car. “It's not good."

"I think people don't fill up as much,” explained Willy Veldman, owner of Veldman’s Marathon. “I think they come as often, but don't fill up every time because they basically run out of cash."

But Donnelly says he has a plan.

"We know we have a long term energy problem and we plan to deal with it on a long term basis, but we want to take immediate action so that our families can take a break in the pocket right now,” he explained.

In a letter to President Bush, Donnelly urges him to stop purchasing oil for the nation's strategic oil reserve.

He says it's currently at pre-hurricane Katrina levels, and this move could save at least 25 cents per gallon of gas.

He also wants 20 million barrels of oil from the reserve put into the market.

"This is very realistic. I believe we'll pass this in the House and if the president vetoes it, I believe we'll override his veto."

But for those at the pump — another plan to lower prices from a lawmaker — they say they'll believe it when they see it.

"They just keep going up and I don't think that’s going to change,” Marion said. “I'm going to have to get a hybrid."

There is some doubt over this plan.

Notre Dame economist Tom Gresik believes it would only have a small and temporary effect on the price of gas.

In fact, between how much oil is consumed each day and what we would be allowed to take out of the reserve each day, he believes this would only impact prices for about 5 days.

He points out that eventually we would have to replace the oil taken from the reserve.

More Good Stuff

WSBT Weather

Current Temp 34.4

More Weather

WSBT Weather

More Weather

On Demand

iPhone
Get the WSBT News and Irish Sports Report apps for your iPhone! Read more »
On DVD
Order a DVD of a WSBT news story! Read more »
Twitter
Follow us on Twitter! Read more »
Facebook
Connect with us on Facebook! Read more »
WSBT E-News
Daily StormTracker e-mails right to your Inbox! Read more »
Video On Demand
Miss a story on WSBT News? Watch it here! Read more »
CBS Shows
Watch CBS shows and news online, free! Read more »
WSBT Alert
Breaking News & Weather right to your cell phone! Read more »
Mobile
WSBT News on the go for your cell phone or PDA. Read more »
RSS Feeds
Get news and updates as soon as they're published. Read more »

Stock Quotes

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.