RI leaders crack down on oil companies

PROVIDENCE, RI (WPRI) - Gas prices on the decline for the first time in eight weeks in Rhode Island.

According to AAA of Southern New England, this is the first week that gasoline prices in have dropped from the previous week.

In the survey for May 16th, 2011, gas has dropped two cents a gallon. The last time the prices fell in Rhode Island, according to AAA’s survey, was March 21st, 2011.

The current price for regular unleaded gas is eight cents above the national average of $3.95.  One year ago at this time Rhode Island’s average price for a gallon of gas was $2.94.

With gas prices continuing to loom around $4 per gallon - national leaders are now considering tapping into the country's strategic petroleum reserves and investigating Wall Street speculators.

Sen. Sheldon Whitehouse said, "Undoubtedly, Rhode Islanders are being clobbered at the pump and something needs to be done."

"This is an urgent issue facing Rhode Island families," said Rep. David Cicilline.

Local leaders are backing a plan to eliminate special tax breaks for oil companies and direct those savings to bring down the national deficit.

Sen. Jack Reed said, "We're giving the oil industry four billion dollars in tax subsidies a year, it's extraordinary."