WASHINGTON D.C. - U.S. Senators Jack Reed (D-RI) and Olympia J. Snowe (R-Maine) today sent a letter to the President of the American Petroleum Institute (API), Red Cavaney, calling for the API to embrace the concept of creating a voluntary assistance program modeled after LIHEAP and funded by API Members to offer low-income Americans help with rising energy costs, both to address this winter's heating bill and rising transportation costs this year.

"Historically high gas and oil prices have contributed to the slowdown of our economy resulting in significant hardships for low-income Americans and seniors," Senator Snowe said. "At a time when the oil and gas industry are enjoying historic profits, this is an opportunity for the industry to take a leadership role in the ongoing effort alleviate the burden that skyrocketing prices are having on our most vulnerable Americans."

In October 2005, Senators Snowe and Reed wrote to request that larger members of the American Petroleum Institute create a voluntary LIHEAP initiative. In a letter dated November 7, 2005, the API declined to pursue the proposal. On the date of that response, oil prices were $59.40 per barrel. This month, crude oil futures set an all time high of $108 per barrel, an eighty-one percent increase.

"Gas and oil prices are just too high for Rhode Islanders. These record high prices have been a windfall for big oil companies, but they've placed a $150 billion defacto tax burden on the American people. As oil prices rise past $110 a barrel, we need to find a way to help families who are struggling to keep their heat turned on or fill up their gas tank to get to work," said Sen. Reed. "Oil companies should start investing some of that windfall back into the American economy and into helping people by voluntarily contributing to programs that help low-income families pay part of their energy bills."

The average Mainer uses 850 gallon of home heating oil each year, which roughly accrues to $2,932 for each household this year - a staggering $900 increase from last year. When you consider that the per capita income in Maine is $23,226, and the average income of a LIHEAP recipient is $13,000, it is difficult to comprehend the burden that this increase has placed on Maine families.

In Rhode Island, the cost for a gallon of heating oil increase by over 56 percent this winter. The cost for a gallon of gasoline in Rhode Island is 26 percent higher than last year at this time. In 2008, the average Rhode Island household with children will spend about $3,601 on transportation fuel costs. Unfortunately, neither families' salaries nor seniors' retirement checks are keeping pace with these increases.

According to the Energy Information Administration's Short-Term Energy Outlook, the price of heating oil was 36 percent higher this year than last. In 2001, it cost the average American household $627 to heat their home with oil in winter. This winter, it cost almost $2,000 on average to heat a home with oil.