Gasoline prices are driven by the cost of crude oil, which itself is driven by global free market forces over which the consumer has no control (OPEC policy, supply, global demand, refinery output, market speculation, etc). About 1/3 of the price at the pump is due to federal and state taxes.
http://www.eia.doe.gov/neic/brochure/oil_gas/primer/primer.htm
It's easy to blame the Arabs and the oil companies for rising gas prices, but they are only part of the cause. Blame also lies with the rapid industrialization of China and our own resurging economy (both raise global demand). Americans will always be forced to REACT to gas prices until the federal government gets its act together and implements a coherent energy policy. Right now, any semblance of an energy policy is administered by the states - a hodgepodge of guidelines and regulations that do little to buffer the consumer from fluctuating energy costs.
The way things are now, fuel prices rise to the point where people really start to take notice and react (shunning SUVs, driving less, lowering the thermostat, insulating the house, etc). OPEC, fearing that we may grow less dependent on their product, lowers prices by raising production. We then obligingly slip back into energy use complacency until prices creep higher and start the cycle again.
I think the federal government should maintain a stockpile of crude oil and gasoline (SEPARATE from the Strategic Petroleum Reserve – that’s there for times of war). They should use this stockpile to take the edge off price spikes of home heating oil and gasoline. By buying low and selling high, the stockpile should at the very least break even, and not cost the govt money to maintain.
I don’t think that ANY non-commercial passenger vehicle that gets less than 20 MPG should be allowed on the road. The govt should slowly implement a minimum passenger vehicle fuel efficiency of 20 MPG over the course of several years. With the proper legal/economic prodding, auto manufacturers could, and would produce a 4WD SUV that gets 20 MPG. Owners of fuel-inefficient vehicles should pay more in registration fees, while owners of fuel efficient or hybrid vehicles should receive some kind of tax credit.
I drive 350 miles a week just to go to work. It costs me about $29 a week at today’s gas prices. I think it’s obscene that the same commute by public transportation would cost me well over $200 a month. And I live in NYC, where the mass transportation system is well developed and funded. In most American towns and cities, the closest thing they have to mass transit is a small fleet of taxis. This has got to change. At the very least, parking at mass transit hubs should be free and plentiful. Mass transit costs should also be fully tax deductible at all levels.
High fuel prices are a problem that will not go away by ignoring them and waiting for the market to sort itself out. Fuel costs affect all of us, even those of us who don’t own cars – we all pay higher consumer prices due to rising shipping costs.