Washington, D.C. - May 19, 2000 - Wisconsin Congressmen Jerry Kleczka and Tom Barrett and Senators Herb Kohl and Russ Feingold sent a letter to Attorney General Janet Reno today requesting a Justice Department inquiry into the role being played by oil producers in the rising gas prices in Southeastern Wisconsin.

Since implementation of the second phase of the Environmental Protection Agency's Reformulated gas (RFG) program, gas prices in Southeastern Wisconsin have been escalating rapidly, with prices in some parts of the Milwaukee area approaching $1.70 per gallon.  Some retailers in Wisconsin have reported being charged nearly 20 cents more per gallon for RFG than for conventional gas.

"Consumers are facing a double whammy," Kleczka said.  "Oil producers are already subsidized by taxpayers, and yet they continue to raise reformulated gasoline prices.  Hopefully the Justice Department can shed some light on how producers can charge such disproportionately high prices for reformulated gasoline."

"Clearly, we need an answer as to why gas prices in our community have sky-rocketed," Barrett said.  "The Environmental Protection Agency has said that producing cleaner fuels would only raise gas prices slightly.  This does not explain why consumers in Milwaukee are being forced to pay the exorbitant price of $1.70 a gallon.   It is my hope that the Justice Department can help provide some answers as to what role the oil producers have played in this price hike."

"This is an issue of basic fairness.  If consumers in Southeastern Wisconsin are expected to comply with EPA regulations, then the federal government has a responsibility to protect them from being price-gouged. I'll be interested in the Justice Department's findings," Kohl said.

"Wisconsin needs some immediate assistance from the Department of Justice in order to stabilize the price of reformulated gas," Feingold said. "Wisconsin is doing its share for clean air, but we shouldn't be forced to do it at a premium price that other areas participating in the reformulated fuels program aren't experiencing."

RFG use began in the Milwaukee area during the winter of 1994-1995.  The 1990 Clean Air Act Amendments required cleaner burning gasoline to be sold in areas with severe nonattainment status, including Milwaukee, Chicago, and Gary, Indiana.

The full text of the letter is attached.