Rising US fuel prices add to Republicans' election worries

US: As public disquiet grows over sharply rising fuel prices in the United States, nervous Republican leaders in Congress have…

US: As public disquiet grows over sharply rising fuel prices in the United States, nervous Republican leaders in Congress have called on President George Bush to launch an official investigation into price-fixing among oil companies.

Reflecting concern within the party that the issue could damage Republican prospects in November's congressional elections, senate majority leader Bill Frist and house speaker Dennis Hastert said the attorney general and the Federal Trade Commission should look into allegations of "price gouging" against fuel retailers and wholesalers.

"Anyone who is trying to take advantage of this situation while American families are forced into making tough choices over whether to fill up their cars or severely cut back their budgets, should be investigated and prosecuted.

"Therefore, we believe that federal law-enforcement agencies and regulators should take every available step to ensure that all federal laws protecting American consumers from price-fixing, collusion, gouging and other anti-competitive practices are vigorously enforced," they said in a letter to Mr Bush.

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Fuel prices in the US remain substantially lower than in Europe, but sharp price rises in recent weeks have brought the average cost of a gallon of petrol to $3, close to the record prices after Hurricane Katrina hit the Gulf Coast last year.

More than 70 per cent of Americans told an ABC News/Washington Post poll this month that they disapproved of the way Mr Bush was handling fuel prices. Republicans fear that popular discontent over the issue could cost them their majority in one or both houses of Congress in November.

The price rises come as opinion polls show that congressional Republicans are even more unpopular than the president and that voters believe Democrats would do a better job.

The Iraq war is increasingly unpopular, Republicans are divided over immigration reform and Mr Bush's domestic policy agenda has stalled. The danger for Republicans is that high fuel prices will neutralise the effect of their single piece of good news for American voters - the buoyant state of the US economy.

Over the last three years, economic growth has been above average and five million new jobs have been created, bringing unemployment to a four-year low of 4.7 per cent last month.

However, polling evidence shows that few Americans feel better off and higher fuel costs contribute to a widespread sense of economic security.

Yesterday's initiative from Mr Frist and Mr Hastert is designed to reassure voters that the Republican-led congress is taking action, but there is little that US legislators can do to affect the price of oil on the international market.

Most analysts agree that the recent spike in oil prices is due mainly to concerns about the international political situation, notably the nuclear stand-off between the US and Iran.

House majority leader John Boehner is planning to introduce a package of legislation during an "energy week" in June, probably including plans to open Alaska's Arctic National Wildlife Refuge and new areas off US coasts to energy exploration, expedite permitting of new and expanded oil refineries and expand development of renewable energy programmes on federal lands.

None of these proposals has enough support in congress to become law and Democrats are unlikely to co-operate with Republicans on energy legislation as November's elections approach.

Warning Americans of a "tough summer" of high fuel prices as more people use their cars, Mr Bush this weekend acknowledged the limits of his administration's capacity to do anything about it.

"The American people have got to understand what happens elsewhere in the world affects the price of gasoline you pay here," he said.