Tuesday, April 25th, 2006
Congress Can Lower Gas Prices
Republican Congressional leaders are running around like headless chickens. They’re making a lot of noise without saying anything worthwhile.
Gas prices rise, and Republicans panicFew things are less becoming in a political party than desperation, as Republicans are now demonstrating as they panic over rising oil and gas prices. If blaming private industry for Congress’s own energy mistakes is the best the GOP can do, no wonder its voters may sit out the November election.Oil prices hit $75 a barrel last week, while gas has reached a national average of about $2.85 a gallon. The Republican response has been to put on Chuck Schumer and Nancy Pelosi fright wigs and shout about corporate greed and market manipulation. House Speaker Denny Hastert and Senate Majority Leader Bill Frist fired off a letter to President Bush yesterday demanding the Federal Trade Commission and Justice Department investigate “price fixing” and “gouging.”
Even with control of Congress and the Whitehouse, Republicans have done nothing to reduce our dependency on foreign oil and keep gas prices low. There are three things that they could do, but probably won’t because they have no spines.
- Temporarily reduce or eliminate Federal gasoline taxes. The current federal tax on a gallon of gas is 18.4ยข. Talk about price gouging! Eliminating this tax would mean an immediate 6% reduction in the cost of a gallon of gas.
- Temporarily suspend laws requiring a myriad of different gasoline blends in different parts of the country. The changeover from “winter gas” to “summer gas” causes a spike in prices and spot shortages. Another immediate reduction in the cost of a gallon of gas.
- Open up ANWR and allow more offshore drilling. Stop kowtowing in front of the environmental wackos. They show false commercials with polar bears and cute seals. None of these animals live in the area where drilling would occur. To drill in ANWR would require the use of less than 1% of the total land mass of the arctic refuge. When the Alaska pipeline was built, caribou populations actually increased.
I know at least one of my Senators favors drilling in ANWR, I’ll have to ask him if he’s willing to reduces taxes and regulation to help out the common man.
11 Comments
April 25th, 2006 at 09:26
Reducing the taxes will do nothing. The minute the 18 cents comes off the top, the gas companies will put it right back on. Same goes for the state tax.
April 25th, 2006 at 09:57
You’re assuming that the oil companies are greedy and evil. I’m not willing to make that assumption.
April 25th, 2006 at 10:47
You may not be willing to make the assumption that oil companies are greedy and evil. I’m not willing to make the assumption that they’re not. They’re protecting their business model to the bitter end, doing their best to hinder alternate energy technologies until their wells have run dry. They’re complaining about oil markets and regulations driving up the prices, but at the same time they’re making record profits.
I think it’s pretty much a given that oil companies are greedy and evil. Blind faith in capitalism is no better than blind faith in “wacko environmentalism.”
April 25th, 2006 at 12:04
Have to agree with Michael. Gas companies benefit nothing if we have more fuel efficient vehicles. They benefit nothing from alternative fuel sources.
The only thing that oil companies would benefit from, would be to open drilling in the arctic and other places.
And if oil companies are not all greedy and evil, look at those retirement packages they give their higher ups. If stockholder’s weren’t sharing in record profits, they would be upset and do something about it.
its all about money!!
April 25th, 2006 at 12:13
It’s supposed to be all about capitalism and letting the buyer decide what products are produced and how much they’re going to cost. Government regulation kills innovation. It doesn’t help when Al Gore and other lobbyists propose that we spend taxpayer money on hydrogen fuel research. That’s not what the people want.
If the government wasn’t subsidizing hydrogen fuel research, the auto makers wouldn’t be doing it. Instead, they’d be putting more time and money into what the consumer really wants. In the case of automobiles and gasoline, the current trend shows that people want cars that will run on E85 or Hybrid autos like the Ford Escape.
April 25th, 2006 at 12:23
Of course government intervention kills innovation, I mean when the government invested in the first railroad, they died. The same goes for the internet. I mean who remembers that after the government invented it.
Look, the government regulation kills innovation argument is a boogeyman that companies throw out there whenever they want to make more profit. They have no problems accepting government money and research when its free or low cost to them.
April 25th, 2006 at 12:31
Look what’s happened with gasoline additives like MTBE. Government scientists think maybe, possibly, perhaps, perchance there’s a slight risk it causes cancer. Therefore gas companies can’t use it to make their current government-mandated gasoline blends. And of course that means lawyers got involved, so the gas companies have to bend over and grab their ankles for product liability lawsuits.
April 25th, 2006 at 13:11
Looks like the government has just enough involvement in the industry, to assure big-time profits for years to come.
I agree Jason that the people should be able to choose, but what choice do you have when it comes to filling up your tank now? Search across the state, and you will be LUCKY to find gas below $2.50 gallon. That would be where the government needs to step in a bit. Why don’t they practice their ‘eminent domain’ on a few refinaries??
As for the additives. Several stations are selling the E85. Cost is only around 20 cents/gallon less than regular. Why bother?
The hybrids are a good start, but the industry has a long way to go.
Bottom line is we have become so dependant upon gas, we will continue paying even if the price reaches $5.00/gallon, and we will continue driving those big SUVs, even after it takes $200 to fill up the tank.
And big oil knows it!
April 25th, 2006 at 13:32
Bush Eases Environmental Rules on Gasoline…
President Bush on Tuesday ordered a temporary suspension of environmental rules for gasoline, making it easier for refiners to meet demand and possibly dampen prices at the pump. He also halted for the summer the purchase of crude oil for the governmen…
April 26th, 2006 at 09:56
Now, here’s the real test. Bush eases EPA regs, reforumation-per-state issues, and keeps more oil in the supply, rather than putting it in the reserve.
Now, if these things happen, but the price of gas keeps going up, then the argument is settled. It’s the companies and greed, and the silly way the market bean counters predict “shortages”.
May 1st, 2006 at 07:06
interesting quote on the news this weekend…
blaming Bush (republicans) for high gas prices is like blaming McDonalds for obesity.