Consumers should brace themselves for more pain at the pump. And they can thank President Bush for part of that.
The president continues to ignore the single most effective way to curb oil use: requiring auto manufacturers give consumers cars and trucks that go significantly farther on a gallon of gas.
To help drivers, the president and Congress should increase the fuel economy standards for the average automobile to 40 miles per gallon over the next decade, the equivalent of offering a $550-$650 annual tax break. With gasoline prices at $3 per gallon or higher, drivers are going to need this kind of help.
Congress and the president can also assist by setting enforceable oil savings targets of 7 million barrels per day by 2026. This would be much needed relief since we currently consume more than 20 million barrels of oil and other petroleum products each day, and that is set to rise to more than 26 million barrels per day by 2026. By establishing the goal, Congress and the president would help ensure that all industries, consumers and the government do their part to reduce our oil addiction.
In the near term, consumers can fight high gas prices by doing several things.
One, they can purchase the highest fuel economy car or truck that meets their needs.
Two, they can reduce travel by carpooling, taking transit, walking or biking.
And three, they can demand that Congress and the president provide them with the $550-$650 annual tax break they would effectively receive from reaching a 40 mpg standard in 10 years.
The president's plan to eliminate the cap on hybrid tax credits to ensure that all qualified hybrids get the incentive will help consumers willing to make the patriotic choice of buying a high fuel economy hybrid. However, extending the credit for only one year is shortsighted as consumers are likely to face the same high gas prices in the coming years.
In the long term, we will have to tap into alternatives to oil. The president is right to point to cellulosic ethanol, hydrogen and electricity as fuels that could help us kick our oil habit. But we must pursue these alternatives alongside significant reductions in the amount of fuel our cars and trucks require. Otherwise, we'll still be over the barrel.
The reality is that the world's petroleum is limited. We simply cannot drill our way out of high oil prices when we consume 25 percent of the world's oil and yet have only 2 percent of the world's oil reserves.
Increasing fuel economy by only two mpg would save more oil every day than the Arctic National Wildlife Refuge could provide at its peak 20 years from now.
Without taking both short- and long-term steps, any fuel plans will be running on empty.
David Friedman is research director at the Washington, D.C.-based Union of Concerned Scientists. He can be reached at pmproj@progressive.org.