Larry Joe Doherty Calls for Diesel Price Reduction Strategy

Doherty says policy will relieve burden on rural America, reduce prices throughout economy

(Brenham, TX) - Larry Joe Doherty, Democratic nominee for the 10^th Congressional District of Texas, today announced a plan to specifically target out of control diesel prices affecting America's rural communities and small businesses. With diesel prices spiking at rates far higher than regular gasoline, Doherty called for a diesel-specific strategy to provide relief at the pump for rural communities.

"Diesel is central to the economic well-being of our family farms, ranches and small businesses," said Doherty. "I have an action plan that focuses on diesel price relief as a critical part of our national energy policy, because it is past time for real leadership to protect our way of life. My plan will help our family farmers and business communities who rely on diesel so that they can fulfill their vital role in getting our economy back on track."

Doherty's action plan addresses both short- and long-term needs, and immediately targets market speculators. Leading energy experts across the country have said that the recent, unprecedented jump in crude oil prices is due, in large part, to rampant speculation in the energy commodities markets.

"We need to release 70 million barrels of oil from the Strategic Petroleum Reserve to provide immediate relief at the pump for our farmers, ranchers and truckers who rely on diesel," said Doherty. "History shows that in times like these, tapping the SPR drives the speculators out of the market and the prices down."

Each time the SPR has been tapped or suspended, there was an immediate impact on oil, gas and diesel prices. Similar actions were taken in 1991 and in 2005, and oil prices dropped by 33 percent and 19 percent respectively. In July, incumbent Michael McCaul voted against releasing 70 million barrels from the SPR, which represents 10 percent of the 706 million barrels the SPR currently holds [HR 6578, Vote #527, 07/24/08]. McCaul has also voted against legislation targeting price gougers [HR 1252, Vote #404, 5/23/2007].

"Michael McCaul is in the business of fighting for those who sell diesel by the barrel, and we need to be focused on the farmers, ranchers and truckers who pump diesel by the gallon," said Doherty. "My diesel price reduction policy will help to protect the way of life for our family farmers and local business communities. We must ensure that they can continue to provide and transport the goods that are our nation's lifeblood, which in turn will lower prices throughout the rest of our economy."

Larry Joe Doherty's "Diesel Price Reduction Action Strategy":

• Immediately release 70 million barrels of oil from the Strategic Petroleum Reserve to provide immediate relief at the pump.
• Pass accountability legislation of petroleum exchanges to make it less attractive for hedge funds to speculate on petroleum prices, while ensuring that a robust market exists for legitimate purposes.
• Increase our domestic energy supply by ending tax subsidies for mega-oil companies, and then placing those funds into alternative and renewable energy development programs such as biodiesel to form a balanced energy strategy.
• Invest in clean, heavy-duty diesel engine technology.
• End taxpayer subsidies of domestically-produced biodiesel being exported. U.S. taxpayers should not be subsidizing European drivers.
• Adopt a national diesel fuel standard and streamline the refining costs imposed by the multiple standards of different states.
  
  

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