Industry Groups and Consumer Advocates Unite Around Energy Costs

Coalition of Industry Trade Associations and Consumer Advocates Appeal to Bush to Act Against Excessive Speculation Driving Energy Costs to Historic Highs

WASHINGTON, July 3 /PRNewswire-USNewswire/ -- A broad coalition of industry trade associations and consumer groups has come together to ask President George W. Bush to act now against excessive speculation driving energy prices to historic highs.

"Americans rely on affordable energy to get to work and heat and cool their homes. Affordable energy is needed for America's farmers, builders, contractors, transporters, manufacturers, retailers, airlines and other businesses to provide the quality goods and services that fuel our economy," the coalition said in a July 3 letter to Bush. "Please see to it that the cost of energy - the lifeblood of the American economy - is reconnected to economic realities, and that the artificial demand created by 'paper traders' be limited to ensure rational behavior in the futures markets."

More than a dozen industry associations, including the Petroleum Marketers Association of America, the New England Fuel Institute, the American Trucking Association, the Air Transport Association, Consumer Federation of America, Public Citizen and the Industrial Energy Consumers of America, among others, signed the letter, which was copied to nearly two dozen administration officials and sent to all members of Congress.

Specifically, the coalition asked Bush to raise the issue of speculation in the global commodities futures market at next week's G8 summit; require the Commodity Futures Trading Commission (CFTC) to step up regulation and enforcement against excessive speculation in the United States and impose new requirements on traders who don't take physical possession of the energy commodities they purchase; and sign legislation now before Congress that would strengthen the CFTC's authority and close a number of loopholes that speculators use to game the energy markets.

"This letter represents a broad coalition of support to reign in excessive speculation," Dan Gilligan, the president of the Petroleum Marketers Association of America, said. "Clearly, excessive speculation is driving the cost of energy. The President needs to act, and act quickly, to restore confidence in our markets because it has been dangerously undermined and we are all paying the price."