/ 27 April 2006

Bush faces fuel revolt

United States President George W Bush, facing a summer of revolt from a nation that believes fiercely in its right to affordable petrol, on Tuesday unveiled plans to try to stop a rapid rise in prices at the pump.

In a speech to the Renewable Fuels Association in Washington, Bush acknowledged that the high prices were hurting ordinary Americans as the holiday season approaches.

In an attempt to halt the panic among ordinary Americans now faced with paying more than $3 a gallon for petrol, Bush began with a plan to halt the purchase of crude oil for the government’s emergency reserve. The US has enough fuel to guard against any disruption over the next few months, he said. ”So, by deferring deposits until the fall, we’ll leave a little more oil on the market. Every little bit helps.”

Other elements of Bush’s plan called for the easing of environmental safeguards to speed the building of refineries, and air quality requirements on fuel grades. Bush also repeated calls to open up the Arctic wildlife reserve to drilling.

Analysts said the measures would do little to address the immediate pain that Americans are feeling at the pump. They described the halt on contributions to the strategic petroleum reserves as psychologically symbolic.

However, Bush won praise for his rhetorical commitment to alternative fuels, even if he disappointed some analysts by not doing enough to encourage energy conservation.

In another sign of the apparent conversion of a former Texas oil man, Bush also called on Congress to roll back $2-billion in tax breaks for oil companies over the next 10 years. — Â