"Real Price Of Gasoline" Report Reveals Actual Cost of Gas to Consumers Is as High as $15.14 per Gallon

A while back I mentioned that I had calculated the actual price of gas at around $10 per gallon. I estimated that rather conservatively. Since gas prices are in the news as of late, I thought this report might be of interest. Note that the date is almost ten years old! If you simply adjust to the Consumer Price Index, that amount today would be $20 per gallon. Crude oil is now $132 per barrel as opposed to $60 per barrel last year. Now is not the time to rethink driving habits. Now is the time to consider not driving at all!

11/16/1998

STUDY RELEASED BY THE INTERNATIONAL CENTER FOR TECHNOLOGY ASSESSMENT (CTA) DETAILS OVER $1.69 TRILLION IN SOCIAL COSTS AND GOVERNMENT 'WELFARE' FOR GAS INDUSTRY

MIDDLE EAST TENSIONS AND GLOBAL WARMING MAJOR CONTRIBUTORS TO MASSIVE INCREASE IN THE REAL COST OF GAS


Washington D.C. -- A report released today by the International Center for Technology Assessment (CTA) calculates that the actual cost of a gallon of gas to the American consumer could be as high as $15.14. The report "The Real Price of Gas" identifies and quantifies the many external costs of using gas that consumers pay indirectly by way of taxes, insurance costs and retail prices in other sectors. Established in 1994, the International Center for Technology Assessment (CTA), is a Washington-based research organization that analyzes how technology affects society.

The CTA study examines more than 40 separate cost factors associated with gasoline production and consumption. These include subsidies for the petroleum industry such as the percentage depletion allowance; tax-funded programs that directly subsidize oil production and consumption, like government-sponsored R&D for the oil industry; the costs of protecting oil supplies, shipments and motor vehicle usage, including military expenditures for protecting the Middle East and other oil rich regions; and environmental, health and social costs including those for global warming. Together these subsidies for gas paid by consumers total up to $1.68 trillion per year.

The Report will be released at a news conference today, Tuesday, November 17, 1998, at 10 a.m. The conference will be held at the offices of the Communications Consortium at 1200 New York Avenue, N.W. (AAAS Building, 1 block from Metro Center), Second Floor, Revelle Conference Room. Scheduled panelists include Andrew Kimbrell, and Joseph Mendelson of CTA, Ann Mesnikoff of the Sierra Club and Gawain Kripke of Friends of the Earth.

According to CTA Director Andrew Kimbrell, "The real price of gas has been hidden from the consumer for far too long. Some of these costs including those associated with military actions in the Middle East and global warming could skyrocket in the coming years. Once the public understands how much they are really paying for gas we should see a tremendous increase in political pressure for alternatives."

Joseph Mendelson III, CTA legal director commented, "This Report has major policy implications. For example, the Environmental Protection Agency (EPA) is currently drafting standards for the next generation of automobiles through the "Tier II" process. This Report indicates that the EPA should encourage a significant move away from gas-powered vehicles."