Blagojevich To Bush: Release Reserve Oil

CBS 2 Chicago
Aug. 17, 2005

Governor Rod Blagojevich issued a presidential challenge Wednesday asking to release oil from the strategic petroleum reserve to offer everyone relief from expensive gasoline.

“It’s out of control, and we can’t just sit back and not try to do something to help the working people of Illinois,” Blagojevich said.

The Illinois governor is putting pressure on Washington in a letter to the White House, saying an increase in supply would reduce the pumped-up prices.

CBS 2 Political Editor Mike Flannery is live with Blagojevich at the state fair in Springfield.

President Bush is balking at the governor's request. A White House spokesperson said Wednesday that the president does not agree with the governor's claim that $3 a gallon gasoline is a national emergency and that is not what the petroleum reserve is all about.

The reserve is a little more than a two-month national supply and releasing it now would have at best a temporary impact, the Bush Administration said.

It is all about the politics of paying at the pump. With gasoline prices rolling up new records every month, it is enough to pinch the pockets and spoil some of the fun for everyone, who drove to the Illinois State Fair.

“I used to be able to be fill up for $20. Now it is cost $30 to $35. And I have a car getting 35 miles to a gallon. It is painful,” said Mary Panozzo of Beecher.

“I feel like I am throwing away money because you can put it in the gas tank, and what took $20 to do, now takes $40,” said David Benton of Chicago.

Responding to that, Blagojevich sent a letter to President Bush urging the White House to release oil from the petroleum reserve -- a move the governor said would reduce gasoline prices nationwide.

The White House promptly rejected that idea. Still, the governor had no sympathy for a state representative's call to reduce Illinois sale tax on gasoline.

“Let's take one step at a time. For now get President Bush a chance to respond to my request that I think is something that has a proven track record of success as President Clinton did it in 2000. It brought gas prices down about 14 cents a gallon,” Blagojevich said.

The Bush White House does not agree with the governor on that. When Clinton released oil from that petroleum reserve, prices only fell by a nickel a gallon and only for one month, officials said.

Administration officials say that is not worth doing again.