Daily Herald,
April 17, 2005
Plan now to control gas prices
later
With pump prices topping $2.50 a gallon and the summer driving season
approaching, any elected official can gain political mileage from
railing against the high price of motor fuel.
While U.S. Rep. Mark Kirk probably doesn't mind whatever friend-of-the-consumer
image he might gain from his recent remarks about fuel prices,
he also is raising constructive and important ideas for keeping
gasoline prices from spiraling out of sight.
Little can be done in the short term; Kirk acknowledges as much.
Crude oil prices fell last week; pump prices did not drop much.
It is never easy to divine all the factors that cause prices to
edge up or down one day to the next or one week to the next. But
many factors - most notably the enormous demand for petroleum
by growing industrial powers such as China and India - point to
the conclusion that higher fuel prices than any of us would like
are here to stay.
With that in mind, Kirk, who represents the eastern portion of
Lake County and parts of Northwest Cook County, suggests measures
that could help control prices in the longer run and minimize
the damage of permanently higher petroleum costs.
For one thing, Kirk advocates the eventual adoption of a single
clean-burning gasoline formula for the entire country. That stands
in contrast to existing circumstances, which have many different
blends of gasoline being produced for different regions, each
tailored to that area's air-quality needs. The trouble with the
current approach is that it leads to production and distribution
monopolies, which drive up prices.
Kirk, accompanied at a news conference last week by Argonne National
Laboratory researchers, also backs legislation that would boost
efforts to advance alternative fuels. By all means, yes. Talk
of alternative fuel technology has been around for decades; failure
to finally act more aggressively can only imperil the economy.
Finally, Kirk has called for extending the $2,000 tax credit
for buyers of gasoline-electric hybrid cars. The credit is scheduled
to be reduced next year and phased out in 2007. Some might ask
whether escalating fuel prices aren't motivation enough for consumers
to buy the higher-mileage hybrid vehicles. To an extent, yes.
But hybrid autos also cost more than their gasoline counterparts.
Honda's new hybrid Accord costs several thousand dollars more
than the base-model Accord. Even at today's gasoline prices, it
would take buyers a long time to cover the difference with savings
at the pump.
There's a school of thought - one that has some merit - that
Americans long have been spoiled by low fuel prices. But higher
gasoline costs are more than a shock to selfish consumers accustomed
to low prices and disinterested in conservation. Higher fuel prices
also have real and deleterious effects on the economy. Washington
needs people like Kirk who are willing to take the lead on these
issues, not for personal political benefit but to cushion the
economic shocks that lie ahead.
Copyright© 2005
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