Gas Prices Anyone?
Posted By: Jeff Wolfe
Date: May 4th, 2007
Category: Climate Change
Anyone else notice that gasoline prices have jumped 50 to 75 cents in the last two months? I have not looked back at the historical figures, so I don’t know the exact dates, time, costs, but I do know that I’m now paying over $3.00 per gallon for regular in Vermont. (This Vermont Fuel Price report is for April 3. Prices are up $0.40 since then.)
Now, I’m not surprised that gasoline is at $3.00/gallon. I knew that it just went down for the elections and would go back up again afterwards. But I am shocked at two things. First, it’s going up quickly. Second, and more surprising, is that we’re not hearing about it. It’s the great non-story. Here we are, close to the prices we saw in this area for gasoline after Katrina, yet there has not been a hurricane (or hard winter, or spring flooding, or any new war, or any other large oil-influencing event). So what gives? Anyone have an opinion? According to an EIA (US Energy Information Agency) April 10, 2007 report, “U.S. retail motor gasoline prices surged over the last 2 months, rising by more than 60 cents per gallon due to higher crude oil prices, unplanned refinery outages, increased demand for gasoline, and low levels of gasoline imports from Europe. Although gasoline prices began their seasonal increase about a month earlier than usual, the rapid rate of price increase is projected to slow over the next few months.” Unplanned refinery outages. Almost sounds like the California electric supply a few years ago.
So now we have $3 gas again. Of course, when we had $2.25 gas, it was “too expensive”, and so we could not add a higher tax on it to fund renewable and alternative fuel technologies. We needed to keep the price down. Well, the price just went up again, and ALL the money is going into the oil companies coffers. Don’t get me wrong, I’m for free enterprise and profit-making companies. I’m also for taxing things that are bad for us, to try to create things that are good for us. (It’s called creating social policy with tax policy. We do it all the time in the US, don’t let anyone tell you differently.)
What if we had increased the tax on gasoline when it was at $2.25/gallon. Make the tax increase the cost to $3/gallon, with the tax reducing if the gas price increased, to hold it at $3/gallon. What would have happened? Most likely, several things:
- We would now have a LOT of money to fund some research, subsidies, or other programs with to encourage alternative fuels, clean vehicles, or anything else we wanted.
- Poorer folks would have a hard time paying for gasoline (I’m not sure I buy this, but I’ll go along for the ride. I mean, poor folks have a hard time paying for everything.)
- Businesses would know for certain what to budget for gas. $3/gallon. No question. (Assuming it did not go ABOVE that level. And our government says it will not even get to $3, so, oops, we’re there already, sorry.)
- We would likely have used less gasoline. Higher prices do encourage some conservation, even in the US.
- Lower gasoline usage would assist in reducing the price of gasoline (less demand, less price pressure). So maybe the price of gasoline really would stay below $3.
- People would complain that gasoline is too expensive.
So, to keep gas prices low, we need to increase the price of gas to reduce demand, and to create funding for gasoline alternatives which also help to keep the cost of gasoline lower by creating alternatives.
But of course, we cannot do this, because at $2.25/gallon, gasoline is too expensive to add taxes to. Oops, sorry. Gasoline is now $3/gallon. And soon we’ll be seeing those beautiful, but potentially devastating storms in the gulf, just like the slides from Al Gore’s presentation.
Now what do we do?
May 29th, 2007 at 9:18 pm
We shouldn’t we surprised by high gas prices or gouging. What we should do is embrace the higher prices and force our administration — not this one, but the next — to add substantial taxes on gas. That’s right. We want higher prices, not lower. But what we should want is the money to stay in this country and not be shipped overseas. For those Americans who are still driving big fat gas guzzlers — it’s time to pay for your consumption. If they can’t make the right decision on their own, they have to be coaxed into conservation and the best way is via the pocketbook. We need to support our troops through a little self-sacrifice at home. And if part of that sacrifice means driving less, then we should drive less. We just can’t follow Bush’s advice and shop and make believe all is good in our world when we know it isn’t. If there really is a war on terror, then we should all be fighting it. Let’s start by driving less, by driving smarter cars. And for those who don’t feel the need or can afford the excesses, then it’s time to pay at the pump and let your additional tax dollars fund public transportation.
June 5th, 2007 at 10:56 pm
Please remember many people of our great country depend on trucks / trailers fuel drinking equipment for there lively hood or Jobs – including many small entrepreneurs Just beginning.
July 4th, 2008 at 6:17 pm
People from Texas, New Mexico, Arizona, and California are leaving for Mexico this hurting the economy more. A third world country has now cheaper prices than the US. So notable is the difference that some Anglo families are settling across the border in search of cheaper prices and services. Many people are loosing their houses and the banks are getting richer and richer. This is not part of the Manifest Destiny (Americans settling in northern Mexico) this is a sign of weakness before rich people. This fourth of July many neighborhoods in the cities of the Valley of Texas did not show the American flag, instead they left for Mexico, the Valley of Texas is getting empty on the fourth of July and with gas prices about four dollars, the folks lose their hopes; patriotism is going down in South Texas if the government does not do anything to control gas prices anarchy will be present in the South. Everything seems to be working backwards because more illegal people are crossing the border so Spanish language is gaining ground again in the South and the English speaking people are leaving for Mexico where they will be forced to speak Spanish because no many people speak English. Think about gas prices and Santanna’s prophecy when Mexico lost Texas, this horrible.
July 20th, 2008 at 1:50 am
I bet that after they keep raising prices of oil in the Middle East, we will get out of their countries. One way or another, we will stop being so vain as a nation and get ahold of our spending. A better way to support our troops is to get OUT of the Middle East NOW! Gas prices will go down once we leave there! The deficit will go down and gas taxes and our OWN tax money can be used for fund job growth and save our country. We can’t fund technology if we can’t pay for food and other life-support items on a daily basis. Get real America!
November 19th, 2009 at 12:53 am
this post has inspired me, i need to get back to posting on my blog soon, its so easy to loose track of time aint it.