On May 5 Sen. John Kyl (R-AZ) announced that he and Sen. Dianne Feinstein (D-CA) “will introduce legislation on Monday [May 8] to strike the 54 cent [per gallon] ethanol import tariff:” Kyl’s press release is reproduced below; an essentially identical version is on Sen. Feinstein’s website.
Category Archives: Congress
The Gasoline Crisis
Part 10: Senators Kyl and Feinstein propose to eliminate (or is it suspend?) the 54 cent/gallon ethanol import duty
News reports suggest that the Administration and Congress are now considering action that would open up the ethanol market to competition, thereby reducing retail gasoline prices.
As previous posts have made clear, if the current crisis in the gasoline market is suddenly high prices and localized supply shortages, recent legislative proposals would not help.
Yet another federal regulation is responsible for recent gasoline price spikes and localized supply shortages: Truck drivers’ “hours-of-service” limits.
We previously noted that Sen. Arlen Specter (R-PA) had made comments favorably disposed toward a “windfall-profits” tax and changes in U.S. antitrust laws, both of which are said to be tools for reducing the retail price of gasoline. Sen. Specter is the primary sponsor of a bill (S. 2557) styled as the “Oil and Gas Industry Antitrust Act of 2006.” The bill is dated April 6, 2006, and thus preceded the recent increase in retail gasoline prices that Sen. Specter referred to during his April 23 appearance on CNN’s Late Edition.