No “one-size-fits-all” solution for high gasoline prices

At the Senate Energy and Natural Resources Committee hearing on reducing gasoline demand, Chairman Jeff Bingaman (D-N.M.) said that fuel prices are harming the American economy and causing serious problems for many consumers. He said that there are a number of ways consumers can reduce their demand for gasoline and save money for other necessary expenses, such as increasing fuel economy and making advances in battery development to enable quicker electrification in the transportation system. Steven Chalk, the Deputy Assistant Energy Secretary for Renewable Energy, said that reducing petroleum dependency can help “improve national prosperity, energy security, and environmental stewardship.” He said that new technologies must meet criteria for cost competitiveness, performance and reliability.

Chalk explained that developing and introducing high-efficiency combustion engines in conventional, hybrid electric and plug-in hybrid electric vehicles is the most effective way to improve fuel economy in the near future. Chalk also explained that there are more than six million flexible-fuel vehicles on American roads that can utilize ethanol blended gasoline up to 85 percent ethanol and 15 percent gasoline, yet those six million are only 2.7 percent of the 222 million total cars.

David Greene, a corporate fellow at the Center of Transportation Analysis, said that there are many things consumers can do themselves to improve the fuel economy of their vehicles, and there are also things Congress can do to help. Greene explained that the driver can have the greatest influence on a vehicle’s fuel economy, saying that typical drivers can increase their miles per gallon by about ten percent by curbing aggressive driving, observing speed limits, removing unnecessary weight from cargo compartments, planning ahead, and avoiding unnecessary idling. Greene also said that gasoline prices at $4/gallon provides a strong economic incentive to increase fuel economy for both car makers and car buyers, and by extending and simplifying incentives for hybrid vehicles new vehicle fuel economy would be raised and the transition to more efficient electric drive systems would be encouraged.

Steve Winkelman, the director of transportation and adaptation programs at the Center for Clean Air Policy (CCAP), explained that CCAP helps governments at all levels design and implement energy and climate policy solutions that balance economic and environmental concerns. He also explained that with limited travel choices, Americans are “left vulnerable” to high fuel prices and are “hit hard in the pocketbook” while the national economy suffers. Winkelman said that smart growth policies that encourage infill and transit-oriented development will be critical to reducing future gasoline demand, because “what we build now will last for a century” -- and will determine whether the next generation will have viable alternatives to paying high oil prices. However, Winkelman said that there is no “one-size-fits-all approach,” and that solutions must be developed locally and not dictated by the federal government.

CFA report shows increase in concern over gas prices and fuel efficiency

The Consumer Federation of America (CFA) released today its first quarterly report, which tracks U.S. gasoline consumption, expenditures, oil imports and consumer attitudes. According to the press release, the report found that “expenditures and oil imports have moderated but consumers want and need more fuel-efficient choices which automakers have been slow to supply.”

Jack Gillis, CFA director of public affairs, said the good news is that consumer indifference has ended, and that consumers are looking for changes. He said the survey also shows that Americans responded to increasing gasoline prices by driving less and by saying they want their next vehicle to get better milage, meaning over 30 miles per gallon. The report claims that “consumers are looking for cars that are much more fuel-efficient than the auto manufacturers are providing.”

Gillis said auto makers will become more competitive, and the manufacturer that produces more fuel efficient cars will “win.” He also said it is important for consumers to make some changes of their own to cut gasoline costs and reduce oil consumption, such as replacing dirty air filters or properly inflating tires. Mark Cooper, CFA research director, said the good news is people are trying to use less gasoline, but the bad news is it is a slow and difficult process to change people’s behavior.

Gillis said in the press release that to decrease oil imports and gasoline prices “Congress must continue to raise the standards; the National Highway Transportation Safety Administration must establish aggressive interim rules; automakers have to build and market more fuel-efficient cars, and consumers must buy them.”