WASHINGTON – As crude oil future hit new highs of $123.56 on Nymex trading, Congress examined the causes behind high prices in a hearing on Wednesday that featured NACS 2004-05 Chairman Bill Douglass.

“This is not just any industry we're talking about, it's the key component of a modern industrial society," said Rep. John Conyers (D-MI) in the House Judiciary Committee Anti-Trust Task Force Hearing on Retail Gasoline Prices, reported CNN. "Oil impacts every aspect of our economic life."

Truckers also are negatively affected by rising prices. "High fuel costs affect everything – everything in this room came on a truck at least once," said David Owen, president of the National Association of Small Trucking Companies. "Consumers have several choices: they can buy smaller cars, drive less, cut back on trips or carpool, but truckers don't have those options – they're stuck between a rock and a hard place.”

Representing convenience and petroleum retailers, Douglass noted that stores are small businesses. “When you look at oil companies' earnings reports, remember that retailers aren't sharing in any of that profit," said Douglass. Fuel prices must be as competitive as possible, because consumers will drive 10 minutes to save 3 cents a gallon."

Douglass said that with credit card fees at 9 cents a gallon, retailer margins continue to erode or even be negative.

"Many retailers cannot survive on these small margins," said Douglass. "Many convenience stores are going bankrupt and are being forced out of business."

Yesterday’s NACS Daily provided a link to Douglass’s written testimony.