Time for action on high fuel prices

By Tiffany Wlazlowski 

Last week, the American Trucking Associations sent a clear message to the Bush Administration: Address the current fuel price crisis before it magnifies the current economic slowdown.

It's clear that the high cost of fuel has become an economic damper. If left unattended, out-of-control energy prices will greatly amplify our current economic slowdown and delay an economic recovery.

Every day, ATA hears new stories from its members about how escalating fuel prices are hurting business and affecting their livelihood.

As a leading economic indicator, trucking shows just how rising fuel prices affect the overall U.S. economy. When the trucking industry spends an additional $22 billion on fuel in a single year, it reduces motor carrier resources to buy new equipment, hire more people and invest in new technologies. Consumer prices rise, leaving them with less in their wallets to buy goods. Higher fuel costs also put upward pressure on inflation, leading to higher interest rates.

It's a vicious cycle that will have American taxpayers reeling. If households have to spend their forthcoming tax rebate checks on energy, the stimulus will be significantly limited.

The trucking industry as a whole is making every effort to lower fuel consumption. ATA members are decreasing their consumption of diesel fuel by joining the Environmental Protection Agency's SmartWay Transport Partnership Program, and adopting fuel-saving strategies including aerodynamics, using biodiesel blends, reducing truck speeds, installing auxiliary power units and properly inflating tires, among others.

But the current state of the economy is proof positive that we need help.

In recent weeks, ATA has called upon the Bush Administration to address this crisis situation. The Bush Administration must implement policies that will ensure a steady, affordable supply of oil for the nation's 3.5 million truck drivers and all American consumers.

ATA is urging the Federal government to take action to ensure an affordable supply of fuel.

ATA President and CEO Bill Graves recently issued letters to President Bush, the Department of Energy, U.S. Environmental Protection Agency, Federal Motor Carrier Safety Administration, Department of Transportation, National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration and the Treasury calling for action to stem the highest prolonged fuel prices in history.

We need the government to halt the filling of the Strategic Petroleum Reserve and instead release oil, establish a national diesel standard, work to combat any fuel price gouging that may occur, set a national speed limit at 65 miles per hour and setting speed governors on all new trucks at 68 miles per hour or below, allow environmentally responsible exploration of oil-rich areas in the United States, continue funding for the Environmental Protection Agency's SmartWay program, eliminate the "splash-and-dash" tax benefit for imported biodiesel that is subsequently exported, and suspend the collection of the 12 percent excise tax on the purchase of auxiliary power units and grant a weight exemption for their use.