-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

 STATEMENT OF
 JAY HAKES
 ADMINISTRATOR, ENERGY INFORMATION ADMINISTRATION
 DEPARTMENT OF ENERGY
 BEFORE THE
 ENERGY AND NATURAL RESOURCES COMMITTEE
 U.S. SENATE
 JANUARY 28, 1999

Testimony to the Senate Energy and Natural Resources Committee

January 28, 1998

By Jay Hakes, Administrator
Energy Information Administration
U.S. Department of Energy


"I wish to thank the Committee for the opportunity to testify today on the
state
of the petroleum industry, which is experiencing unusually low crude oil
prices.

Gasoline Prices Lowest Ever (Figure 1)

Today, the cheapest liquid you can buy at a service station is gasoline.
Figure 1 shows that in 1998, consumers enjoyed the lowest gasoline prices in
inflation-adjusted terms since 1942, and possibly the lowest ever. Regular
gasoline prices averaged only $1.03 in 1998, but this obscures the fall off
at the end of the year. In November and December gasoline prices averaged
less than $1.00 per gallon ($0.995 and $0.945 per gallon respectively), and
the latest weekly Energy Information Administration (EIA) data shows them at
$0.936. This is about $1.33 per gallon less than we paid in 1981 in
inflation-adjusted terms, and $0.37 cheaper in nominal terms. That
30-cent-per gallon gasoline that some people may recall buying in the 1950’s
and 60’s is equivalent to about $1.50 in today’s dollars."

Note: The entire testimony is available at:
http://www.eia.doe.gov/neic/speeches/senate/senate.html
____________________________________________________

On the date of Mr. Hakes testimony,  Jan. 28, 1999 he said
the price of gas was 93.6 cents.
It continued on down to 90.4 cents which was the all time low
as reported by DOE on Feb. 22, 1998.
This was 8 days after the Senate acquitted Bill Clinton
of the impeachment charges.
Just 2 weeks later, gas prices started back up.
Prices have continued to increase to the present time.
The latest DOE Report states the average price for
Unleaded Regular is $1.50 per gallon.  (National average)
So in the 13 months since Clinton was acquitted,
gasoline prices have increased 60 cents per gallon,
and they are going even higher.

Nakano

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