By Denise Ross
When President Bush this past week said he wants the Justice Department to investigate big oil companies for price-fixing or collusion and the like, I knew I’d heard that line before.
I must confess I’ve paid little attention to past investigations into Black Hills gas prices, but anyone who pays the least bit of attention would know there have been investigations.
Many of you know it was Tom Daschle leading the charge in each of the past three such events. I hadn’t fully realized this until looking at the clips in total — from 1986, 1990 and 2003.
Here’s a bit of what the RC Journal archives tell us.
1986 — When we measured gas prices in cents instead of dollars and when mid-term elections were also upon us, then-Congressman Daschle called on a federal grand jury to not drop its investigation of price-fixing in Rapid City and Sioux Falls. Prices had hit the scandalous high of $1.19 per gallon. That was in February. In December, a grand jury still was looking into price fixing, and the issue still was making headlines when the newly elected Senator Daschle said on Dec. 4 (in a story by our own Bill Harlan) that he would meet with Justice Department officials to review what their investigation had revealed.
SD’s US Attorney at the time, Phil Hogen, had headed up the initial investigation, which it appears began in 1985, but Daschle took that ball and ran with it. Just when the grand jury was about to wind down in Feb. with a report that allegations could not be proven, Daschle said hold on and sent his press guy around to gather evidence.
At the time of Harlan’s Dec. 4 story, there was a 20-cent difference in price between RC and Soo Foo, something Daschle called “inexplicable and inexcusable.”
A much shorter story on Dec. 17 noted that prices had fallen to about 80 cents across SD, “the lowest level since mid 1979.”
1990 — When propane prices were drawing equal attention, Daschle asked the Senate Energy and Natural Resources Committee to investigate why gas prices would increase in Rapid City each spring, just before tourist season.
“I want to put these guys under oath, under penalty of perjury, and tell this committee that there is no price-fixing,” Daschle told the RCJ in May. “I want them to tell the committee that each and every time prices go up, the same day universally at every gas station, that it is sheer coincidence.”
The average price of gas in SD was $1.16.
In August, after Iraq invaded Kuwait and gas prices spiked above $1.30, both Sens. Daschle and Pressler signed a letter asking the administration of the first President Bush to report to Congress what was up with that.
At the same time, Daschle had success in getting a Senate investigation of gas and petroleum prices. A member of the Senate Judiciary Committee would travel to RC and hold a hearing, set for Sept. 30. BUT Congress stayed in session to work on the budget that weekend. The hearing was rescheduled to the spring of 1991, but gas prices had dropped to $1.20 and, ultimately, no proof of collusion or price-fixing was found.
Gas prices continued to drop through the 1990s, sometimes dipping below $1.
2003 — In October, gas hit $1.70, and Daschle suggested price gouging — but stopped short of price-fixing — and again called for a Justice Department investigation, this time nationwide.
“I do believe that all of the South Dakotans that are being asked to pay these higher bills deserve better answers than they’ve been given so far,” Daschle told the RC Journal.
He went on to question why Black Hills stations didn’t pass on the tax break for ethanol blended gas, a situation I’ve noticed has changed since gas topped $3 last fall.
That request got little traction, so in May 2004 — when he was fully engaged in a bare-knuckles campaign with John Thune, Daschle sent a letter to President Bush asking him to help lower prices. As you might imagine, nothing came of that.
2006 — While gas prices below $2 appear to have gone the way of the lawn dart, politicians — at the behest of constituents — seeking answers from oil types appear to be as fashionable and ubiquitous as the iPod.