5 Policies That Would Make Gas Cheaper

Here is an excerpt from a post by Nicolas Loris at the Daily Signal followed by just his list (without the supporting paragraphs under each of the 5):

Sick of paying too much at the pump?

If you are, there’s good news: There are policies Congress and the Obama administration could implement that likely would lead to lower prices.

If you’re looking to lower gas prices, first look at crude oil prices.

Crude oil contributes the largest component to the price of gasoline. As of June 2014, crude prices made up 67 percent of the price of gas, with refining (14 percent), taxes (12 percent), and retailing and transportation (8 percent) accounting for the rest, according to the U.S. Energy Information Administration. The federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon on diesel fuel. States levy their own taxes, ranging from a low of 12.4 cents per gallon in Alaska to more than 52.6 cents per gallon in California.

Because oil is a globally traded commodity, different factors around the world affect supply and demand, which in turn affects the price Americans pay at the gas pump. Growing demand for oil in other parts of the world, especially in rapidly developing regions such as India and China, put upward pressure on prices. Bad weather or geopolitical risks can disrupt supply, increasing prices. For instance, severe weather can shut down a pipeline or refinery, choking supply and driving prices higher.

Additional U.S. oil production can significantly increase global spare capacity.

The most effective response to variations in energy prices is simply to allow markets to work. Government restrictions, regulations and attempts to force technologies into the market impede the free market’s efficacy. To help American fuel consumers, Congress and the administration should:

1. Lift the ban on crude oil exports.

2. Lift the drilling bans and approve the Keystone XL pipeline.

3. Repeal the Renewable Fuel Standard (RFS).

4. Prohibit greenhouse gas and Tier 3 regulations

5. Repeal the Jones Act.

Read the entire article at the Daily Signal.