FALLING FUEL PRICES VS. INCREASING TAXES By KTVU Consumer Editor Tom Vacar Gasoline prices havent been this low in 6 years thanks to an absolute glut of crude oil that continues to flood an evermore energy conserving world energy market. Crude oil, the biggest factor in the cost of a gallon of gas, is now at a five and a half year low and looks to keep falling. The Triple A says the benefits to consumers are big. Every man, woman and child in America saved almost $44 in 2014 over 2013s gas purchases. Thats $115 a household and $14 billion more dollars for the rest of the U.S. economy. Gas plunged from last years national average high in April of $3.70 yesterdays $2.26. It means were saving about a dollar per person per day in spending on gasoline and diesel. Thats $40 million a day in the California economy that wouldnt be there otherwise and thats showing up in supermarkets and Christmas gifts and all sorts of other places, says economist Severin Borenstein of the University of Californias Energy Institute at the Haas Graduate School of Business. I know Ive saved at least up to $30 a month alone, so, absolutely believe that its going back into our economy, says Richard Cook, an Oakland I met gassing up in Emeryville. And its nice to have more money in my pocket to do other things, especially during the holidays, adds Bernadette Vineburg of Vacaville. But, former big rig driver Jill McAnally, who purchased more fuel than most of us, is not so sure. I think the whole country is run by corporations and I that its just some kind of play behind the scenes, says purchased Despite expert indications to the contrary, no customer I met thinks it will last long. Everything that does down goes back up, so, I think its just a matter of time before it goes back up unfortunately, says Bernadette Vineburg. Its almost kind of an illusion because they just gonna bring it right back up to $3 a gallon or even higher, adds Richard Cook. Though prices may be low right now, there may be some price increases that have nothing to do with the cost of crude oil. The first one, a dime, could come almost immediately. The second one, a quarter, soon thereafter. Within days, the state of California is likely to impose a pollution tax on oil companies that will pass on to consumers at about ten cents more a gallon. Its another tax. Do we have a choice? I mean really, theyre gonna impose it whether we like it or not, laments Bernadette Vineburg. Then, theres the Federal Gas Tax of just over 18 cents a gallon on gasoline and 24 cents a gallon on diesel fuel. Its used to build and repair roads, bit it has not been raised since 1997. In that time, inflation has eaten away 47 percent of its value while road building and maintenance costs have soared. Just to have the same purchasing power, Uncle Sam would have to impose an additional 8 cents a gallon on gasoline to 26 cents and and additional 11 cents to 35 cents a gallon on diesel. It would have to be raised more than that to make up for years of deferred maintenance. If it will improve our roads definitely. Theres so many potholes out there and lane closures that we cant use our roads to the full extent; yeah, definitely, says Ms. Vineburg. I was a truck driver for 9 years and, you know, you go to all these different places and you pay tolls and taxes and then they dont do anything about the roads, warns Jill McAnally. I dont see a reason to raise the taxes at this point. I think were doing just fine as is, says Richard Cook. Though the state carbon tax could come to your pump at any moment, any raise in the Federal Taxes would have to go through Congress and that could take quite a while.
Posted on: Fri, 02 Jan 2015 00:04:39 +0000
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