Chuck Schumer: “there is one big question in relation to the gas tax, and that is if we are going to repeal the 4.3 cent gasoline tax…”

“there is one big question in relation to the gas tax, and that is if we are going to repeal the 4.3 cent gasoline tax, how much of the reduction, if any, will the consumer see? If the market is not working, then consumers will not see much of it at all, and there are indications that the free market in the area of big oil is not working. Today I will be sending a letter to the Justice Department seeking answers to three questions: First, why did the prices spike so quickly, when we all knew there was cold winter months ago and when this idea that Iraq would dump oil has been known for several months as well? That does not explain a 1-week dramatic rise. Second, if there is a true free market, why did not a couple of the companies, at least one of the big ones, decide to keep the price low and compete on price and increase their market share? That is what Adam Smith would tell us they would do. Third, most vexing of all, when the price of crude goes up, the price of gasoline goes up immediately. But when the price of crude on the wholesale market goes down, the price of gasoline hardly goes down at all, and if it does, it is slow and grudging. Until we answer these questions, Mr. Speaker, we are not going to know if the consumers would benefit. And if we can answer these questions, drivers will save hundreds of dollars at the pump, not just the 4.3 cents of the gas tax.”