Rising Gasoline Prices 2012. March 1, 2012

摘要

Higher gasoline prices burden the budgets of households and businesses. Higher gasoline costs can increase indebtedness or reduce spending on other goods and services. They also yield a windfall for crude oil producers because the rise in gasoline prices is driven primarily by higher crude oil prices. The revenue increase is primarily for crude oil production as opposed to refining; crude oil is a cost for the refining business. Crude oil prices are the main determinant of gasoline prices. A key issue affecting crude oil prices in recent months has been uncertainties around supply stemming from tensions with Iran as new U.S. and EU sanctions come into place. Unrest in several small oil producers has also led to supply disruptions. Also, there are persistent concerns about the adequacy of global supply in the face of sustained demand growth in emerging economies. Recent refinery closures in the United States, Europe, and elsewhere may also contribute to higher gasoline prices, particularly in parts of the East Coast. Many of the policies that may address rising gasoline prices are long term. Investments that produce or consume oil, such as new oil fields, pipelines, cars, or factories, are capital intensive and long term in nature. There are limited short term options available to policy makers to address gasoline price increases. This report briefly covers several short-term options that have been considered by policy makers: Strategic Petroleum Reserve Release, Gasoline Tax Holiday, Relaxing Fuel Specifications, Restricting Refined Products Exports, Limit Financial Speculation, Diplomatic Measures. It is unclear what the price impact of these short term options would be, and they involve various policy tradeoffs. Potential costs may include national security, fiscal, and public health priorities.