With
oil prices reaching record levels, consumers are beginning to do their
part to reduce oil consumption. Drivers can fill up less frequently by
using transit or carpooling, driving more carefully, and keeping tires
properly inflated and doing proper car maintenance.
So far, however, the Bush Administration and Congress have failed to do
their part to protect American consumers from skyrocketing gasoline
prices. As a nation, we are facing enormous energy problems that
require real leadership and common sense solutions. Today’s hearing is
unlikely to result in real relief for consumers since it is dominated
by Big Oil and its Administration allies with no representation by
public interest consumer organizations. Arizona PIRG calls on Congress
and the Bush Administration to do several things to provide relief for
consumers.
They should recognize that we cannot drill our way out of this problem
and must dramatically reduce our consumption of oil. The U.S. has only
3% of the world’s proven oil reserves and consumes 25% of the world’s
daily production. It is time for Congress to start protecting consumers
from oil price shocks by requiring cars and trucks to go further on a
gallon of gasoline.
The
auto industry should do its part to help solve this problem. According
to the National Academy of Sciences, we can harness America’s
technological know- how to require light trucks and autos to meet a 40
miles per gallon average standard over ten years. When fully phased in,
this would reduce oil consumed by cars and trucks by one third. Even in
the first several years, consumers would start saving at the pump. For
example, Arizona PIRG’s report “America Idles” documented
that American consumers could have saved $5 billion at the gas pump in
2005 if President Bush had raised fuel economy standards at the
beginning of his first term.
Until these standards are fully phased in, Congress should fund
incentives for consumers to trade in gas guzzlers for more efficient
vehicles. Hundreds of thousands of consumers could benefit if these
incentives were funded by repealing existing oil industry tax breaks or
instating a windfall profits tax on the oil industry.
Finally,
Congress and the Bush Administration should also investigate oil
industry profits and prices and strengthen laws that protect consumers
from price-gouging. While the supply crunch caused by Katrina may be
the biggest short term driver of higher gasoline prices, there is
little question who stands to benefit: Big Oil. Whether it’s a massive
hurricane destroying Gulf Coast oil infrastructure or wars and
political unrest in the Middle East, American consumers are
increasingly vulnerable to supply disruptions. Oil companies take
advantage of these situations by dramatically raising prices at the
pump, and have reaped record profits in the past year as a result.
American
consumers are starting to do their part to deal with record-breaking
prices at the pump, it is time for our leaders in Washington to require
Big Oil and the Big Three automakers to step up and do their part.
