Fixes for the High Price of Gasoline

Where will it end and when? Prices of gasoline, natural gas, heating oil, and electricity keep going up. It would appear that America's dependence on energy is running out of control. After all, there are only so many dollars to go around.

One area of energy at a time. The most influential problem is that of gasoline for transportation. So what can Washington do to help our gasoline situation?

1. Place a tax on oil companies and give the money back to the consumer. This would especially help lower income families. However, are the oil companies really the blame? Your first thought is yes. Look at what they are bringing in as huge profits. Their CEO's are making a fortune. A tax would only reduce the amount of oil brought in because they don't want to be paying out possible profits. If the government borrows money to help pay for the higher cost of gas, the value of the dollar would go down.

2. Place a limit on oil speculation. Many believe that their should be a ceiling on how high speculators should go. Oil speculation on the open market is causing oil to rise even higher. Many believe that it will have to flatten out. If not, it will price itself right out of the market. Some say it is just supply and demand driving up the costs. Hindering or placing restrictions on oil would hurt our free market system.

3. Loosen refining restrictions. There are about 40 different grades of gasoline being made because of EPA restrictions. Reducing the blends required would bring down the cost but at the price of more air pollution. Refineries are only working at about 85 % presently. Maybe a few more refineries would help. The thing is that it would take several years before they are up and running.

4. Lift the ethanol tariff. Keep in mind that ethanol accounts for only about 10% of our total fuel used. Some say it costs more to make it than gasoline being refined. An increase in ethanol would only result in a very small cost in gasoline. Still there are many that feel that not enough is being done in this area.