Could high oil prices mean $4 a gallon gas?
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| If the market was working, gas would be about $4 a gallon. That's the word, not from the oil industry, but from a consumer group.
The Utility Consumers' Action Network in San Diego says oil prices have jumped to their highest level in history, passing $78 a barrel. Yet, the price of gas at the pump is relatively low, with the average in San Diego around $2.88 a gallon. The reason, says UCAN, is refiners are keeping the price down to keep themselves from being noticed by Congress while it is debating a new energy bill. |
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"The reason gas prices are lower right now with oil prices at high levels is because the oil companies don't want to draw attention to our complete dependence on foreign oil and the failure of our national energy policy," argued Charles Langley from UCAN. UCAN says new laws, now up for a vote in the Senate, would require the use of more renewable fuels and take away tax breaks from big oil. The consumer group says after the bill's fate is determined, expect gas prices to skyrocket. Western States Petroleum, which represents the oil industry, did not return a call seeking comment.
Labor Day Price Drops According to UCAN, The Utility Consumers, Action Network, the average price for a gallon of regular unleaded in San Diego County at the time was $2.76. That's 74 cents lower than the record $3.50 a gallon reached in May. Even though lots of Californians take road trips on Labor Day weekend, gas prices remained stable. Consumers we spoke with were relieved but still cautious. "Every time there's a driving holiday or anything like that they always gouge the prices up which I think is really unfair," said Marvin Stanford. Some say political pressure is driving down prices. While energy experts say California refineries finally increased production after maintenance setbacks this past spring. We've also had four consecutive quarters of decreased demand for gas.
Fight Back Langley says for gas prices to stay lower over the long term our federal legislators will have to get involved in developing a new energy policy. |
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For a free 28-page booklet containing 127 gas-saving tips from UCAN and former Road & Track writer Chet Cunningham, click here. |
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