FOR THE WEEK OF MAY 01, 2006

Gasoline price surge rocks families, economy and politics

Fueling up cars, vans and SUVs costs $40 to $50 these days because gas prices across the United States are near $3 a gallon -– or more in many regions. That affects commuters, vacationers, teens and companies operating large fleets. Widespread economic strains put pressure on politicians in Congress and the White House, who are responding with different ideas about what to do.

President Bush, who says there’s no evidence that oil companies are forcing up prices to earn more money, wants the government to raise fuel-efficiency standards for cars. He also says the situation shows the need to decrease dependence on imported oil by developing alternative fuels.

Members of both political parties in Congress want to suspend the federal gasoline tax of 18.4 cents per gallon for two to three months. Republicans propose opening the Arctic National Wildlife Refuge to oil drilling, a sensitive move rejected several times by the Senate. Democrats push for rolling back tax cuts for the oil industry to help pay energy bills for low-income Americans, small businesses and farmers by providing a tax rebate. Others suggest an "excess profits" tax on oil companies, something the president opposes strongly. Environmentalists say $3-a-gallon gas is a reason to carpool, use mass transit, walk or ride bikes.

What’s going on? Crude oil prices on world markets have reached a record level of about $60 per barrel or more, partly because of increased demand from developing nations such as China and India. At the same time, U.S. oil refiners now are required to mix high-priced ethanol with gasoline to produce cleaner-burning fuel. In addition, 3 percent of America’s refining capacity is still out of service because of Hurricanes Katrina and Rita last year.

Columnist says: "A gas tax is a far better way to encourage conservation . . . [than] mandating more fuel-efficient cars. . . . That would give investors the incentive to find cheaper alternatives, and the market would sort out the winner – natural gas, ethanol, methanol, soy diesel, whatever works." – John Tierney, New York Times

Environmentalist says: "The single most effective way to curb oil use is requiring auto manufacturers give consumers cars and trucks that go significantly farther on a gallon of gas. To help drivers, the president and Congress should increase the fuel economy standards for the average automobile to 40 miles per gallon over the next decade. . . . In the long term, we will have to tap into alternatives to oil." -- David Friedman, Union of Concerned Scientists

Front Page Talking Points Archive

Common Core State Standard
SL.CCS.1/2/3/4 Grades 6-12: An essay of a current news event is provided for discussion to encourage participation, but also inspire the use of evidence to support logical claims using the main ideas of the article. Students must analyze background information provided about a current event within the news, draw out the main ideas and key details, and review different opinions on the issue. Then, students should present their own claims using facts and analysis for support.