WASHINGTON, April 25 (UPI) -- U.S. President George Bush ordered an investigation Tuesday into possible gasoline price gouging by retailers.
With the pump price of gasoline averaging $2.919 per gallon, initiating a Justice Department and Federal Trade Commission investigation responds to a growing chorus of demands, including from Republicans, for action against oil companies.
"This administration is not going to tolerate (price) manipulation," he said.
Bush also said contributions to the nation's Strategic Petroleum Reserve were being temporarily halted and Congress was being asked to repeal tax incentives for oil companies. In addition, he called on lawmakers to expand federal tax credits for hybrid vehicles, ease drilling limitations inside the United States, including Alaska, and ease permitting to expand the refining sector.
The president, who disclosed his initiatives in a speech to U.S. ethanol producers, said nothing about lifting the 54 cents per gallon duty on imported ethanol, the scarcity of which has resulted in spot outages at various coastal communities.
Bush also ruled out price controls.
Meanwhile, states were taking their own steps for price relief. Illinois' treasurer called for a cap on the state's 6.25 percent gasoline sales tax. And California Gov. Arnold Schwarzenegger ordered state officials Monday to begin a gas price investigation.
