By Paul Minnis, The Republic
pminnis@therepublic.com
U.S. Rep. Baron Hill, D-Ind., predicted gasoline would reach $5 a gallon this summer, even while promising he would do all in his power to discourage its unnatural cost inflation.
Hill rode a Columbus city bus Wednesday to talk with riders about oil, gasoline and what Congress should do to ease consumers' burdens.
On a packed route in which some people had to stand, Hill visited with riders individually, listening to their stories and outlining his ideas to curtail prices and end foreign-oil dependence.
The bus trip, which spread through East Columbus, took about an hour, ending at City Hall.
Hill said he was under no delusions about gasoline and believed it soon would reach $5 a gallon.
But he said the 110th Congress is fighting the problem by suspending oil shipments to U.S. Strategic Petroleum Reserve and giving the Department of Justice power to sue companies that manipulate oil markets, among other steps.
He does not support drilling in Alaska. He said Congress instead has passed bills that end tax breaks for big oil companies and bolster incentives to produce renewable energy.
Republican Mike Sodrel, who is challenging Hill for the 9th District seat, said he doesn't think gas will hit the $5 mark.
"If the supply is not interrupted, we maybe have seen the spike," Sodrel, who was not on the bus, said.
However, he said the cost depends on demand, the weather during the summer and storms that could affect oil refineries.
Sodrel said drilling for oil, particularly in Alaska, is necessary.
"We're going to have to drill in the U.S. in as environmentally friendly fashion as we can, because we need gas for at least another generation," Sodrel said.
Fuel is expensive for many reasons, Hill said, but one of the reasons, the purchase of oil futures as a money-making strategy, is unnecessary and unfair.
A lack of regulation since 2000 has driven demand, allowing traders to make money by betting that oil and gas prices will rise.
"I think fuel will always be high, and I don't think we'll ever return to the days of $1.50 gas," Hill said. "It just doesn't have to be artificially high."
Without the unregulated futures purchases, gas would cost $2.75 a gallon, said Hill, citing his discussion with two economists.
Hill said he would talk with an Indiana University economist today to further explore the issue.
Special Projects Editor Kirk Johannesen contributed to this report.