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FOR IMMEDIATE RELEASE |
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Rep.
Peter J. Daley |
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Daley implores governor to temporarily cut Pennsylvania’s gas tax
HARRISBURG, May 1 – State Rep. Peter J. Daley, D-Washington/Fayette, chairman of the House Commerce Committee, called upon Gov. Edward G. Rendell today to use his executive power to temporarily suspend Pennsylvania’s gasoline tax for June, July and August to help ease the burden of climbing gas prices on consumers.
"When gas prices get as high as they are now, it’s not unreasonable to consider temporary solutions that will help all Pennsylvanians," Daley said. "While it won’t solve the current gas crisis or alleviate all the pain being felt by consumers, it will be a modicum of welcome relief. Every little bit helps."
Daley’s letter stated, "I implore you to use your executive power to immediately and temporarily suspend the 32.3-cent liquid fuels tax for three months -- June, July and August -- to allow Pennsylvania motorists some immediate relief at the pumps. [Click here to read Rep. Daley’s letter]
"Family budgets have passed any ability to absorb short-term increases for necessary gasoline expenditures, and now consumers are beginning to shift spending away from other purchases including basic needs. Skyrocketing gas prices are forcing many residents to make choices that they shouldn’t have to make: Do we put gas in the car or do we eat?
"Pennsylvania stands at the threshold of economic devastation as fuel prices continue to skyrocket toward $4 a gallon for unleaded. At a time when we are already feeling the burn of inflated prices at the pump, with the arrival of Memorial Day, gas prices are likely to increase even more. This can only hurt the tourism and hospitality industry which is the second-highest contributor to the state’s economy.
"I believe there is more than enough support among Pennsylvanians to see this through, and I intend to continue advocating for this temporary three-month suspension," he said.
Daley said the cost of his proposed gas tax holiday to ease consumer’s burden at the pumps could be covered by the state’s rainy day and/or sunny day funds or with the current budget surplus estimated at $427 million.
Daley is also pursuing legislation that would ask for an investigation into the rising fuel prices due to price fixing or gouging, as well as legislation to set a fixed price for gas once it is in the holding tank at service stations. Under Daley’s proposed legislation, only new gas would be able to have a price increase.
"My legislation will help regulate gasoline prices in Pennsylvania and protect people’s pocketbooks," Daley said. "Under my proposal, gasoline retailers would be prohibited from increasing the price of gasoline more than once in a 24-hour period."
Daley said retailers price gasoline based on a number of factors, including the anticipated market price for fuel the next day. Because of the volatility of the current market, many gas retailers have been changing their per-gallon price of fuel several times each day.
"Currently, prices can be changed throughout the day, so the cost of gasoline is sometimes significantly higher on your drive home than when you left for work in the morning," he said. "This is not acceptable. We need to ensure that Pennsylvanians are protected against swindlers who will surely take advantage of the current gasoline crisis."
This is the second time Daley has requested action on gas prices. In 2004, he asked Rendell to cut the then 27.3-cent gas tax in half for six months.
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