Oil Refiners Predict Higher Gas Prices (due to cap-and-tax, 28 to 54 cents per gallon)

Wall Street Journal ^ | May 21, 2009 | BEN CASSELMAN and SUSAN DAKER

[reaganaut1]

The Waxman-Markey bill is making just about every segment of the oil and natural-gas industry unhappy.

Oil refiners would be hit, because they would likely be among the largest buyers of emissions allowances. In addition to covering their own emissions, the refineries that turn crude oil into gasoline, diesel and other fuels will be responsible for the carbon emissions from transportation.

That puts the industry on the hook for some 44% of U.S. carbon emissions, according to the American Petroleum Institute, but it would receive just 2% of the emissions allowances available under the bill. Refiners would have to buy the rest at auction or on the open market.

By comparison, the electricity sector, which accounts for about 40% of U.S. CO2 emissions, would receive 35% of the allowances, with other industries such as cement, glass and paper manufacturers getting 15% of the free permits.

...

Refiners, already under pressure as the recession cuts U.S. demand for gasoline, say the bill will raise prices for consumers, force some refineries to close and increase foreign imports from countries that don't have to abide similar rules.

The added cost of buying allowances would likely be passed on to consumers in the form of higher gasoline prices, which could rise 28 cents to 54 cents a gallon by 2030, according to analysts at the National Commission on Energy Policy, a Washington-based bipartisan group.

[reaganaut1]

Increasing gasoline taxes polls badly. Republicans need to remind voters that cap-and-tax is a backdoor tax on gasoline and almost all forms of energy.

[hosepipe]

This is Domestic political espionage..
It needs to called what it is..

[AngelesCrestHighway]

Obama’s socialism sucks!....

[DonaldC]

There is always an excuse for gas going up.

[Republic of Texas]

Here’s one, a gallon of gas would be about .50 (that’s fiddy cent to liberals) cheaper without the tax burden. The government already makes more on a gallon of gas than any oil company or refiner.

[AxelPaulsenJr]

My tagline says it nicely.

[La.daddyrabbit]

I remember filling up a while back and seeing a sticker on the pump which broke down the price for a gallon of gas into production & marketing, then the taxes. It’d be a great idea for marketers to provide this information at the pump again in large bold font, just to inform those purchasing fuel what they are really spending their money on.
Diesel should also list compliance cost with the ultra-low sulphur requirements mandated by the imperial federal government.

[PMAS]

ping

[TexasRepublic]

When does the fun start? I’m not getting any younger.

[nascarnation]

Cap and Tax
A politician’s orgasm in consort with the MSM.

Massive new revenues
No obvious connection to the govt
All the blame goes to manufacturers, utilities, etc

Waxman is ecstatic.