A Chequer-Board of Nights and Days

In 2000, with gas prices on the increase, the Clinton Administration decided to tap the Strategic Petroleum Oil Reserves in an effort to make it appear that government could implement some kind of long term fix to the "problem" of increased prices . . . and to help Al Gore's Presidential candidacy.

Back in 2000, Republicans rightly criticized this move. Today . . . they imitate it:

President Bush has decided to temporarily halt deposits to the nation's strategic petroleum reserve to make more oil available for consumer needs and relieve pressure on pump prices, a senior administration official said Tuesday

Bush, under pressure to do something about gasoline prices that are expected to stay high throughout the summer, was to announce the decision in a speech. It was part of a flurry of actions designed to demonstrate that the administration was trying to deal with rising prices.

During the last few days, Bush asked his Energy and Justice departments to open inquiries into whether the price of gasoline has been illegally manipulated, said White House press secretary Scott McClellan. Bush planned to announce the action Tuesday during a speech in Washington. The government also asked states on Tuesday to guard against unfair pricing.

It's unclear what impact, if any, Bush's investigation would have on prices that are near or at $3 a gallon or more. Asked if Bush had any reason to suspect market manipulation, McClellan responded, "Well, gas prices are high right now, and that's why you want to make sure there's not."

Republicans who control Congress have become concerned that the high cost of filling up could become a problem for them in the November elections. Polls suggest that voters favor Democrats over Republicans on the issue, and Bush gets low marks for handling gasoline prices.

The administration sent letters Tuesday to state attorneys general urging them to vigorously enforce state law "against any anticompetitive, anticonsumer conduct in the petroleum industry."

"Consumers around the nation have expressed concerns about what they have perceived as anticompetitive or otherwise unfair conduct by the world's major oil companies," said Attorney General Alberto Gonzales and Federal Trade Commission Chairman Deborah Platt Majoras. Their letter said federal agencies had substantially increased efforts to monitor, detect and prevent any violations of the law.

I have no problem with laws being enforced. But first, there has to be some kind of showing that they were broken, does there not? And given that there is no chronic fuel shortage and that when inflation is taken into account, there is no pricing crisis even remotely approachable to the kind faced by the United States during the Carter Administration.

So what explains this? Panic on the part of the Administration and congressional Republicans regarding the potential loss of seats in the upcoming midterm elections. And of course, we all know that panic is a great way to make policy.

UPDATE: A valuable contribution to the debate can be found here.