Gasoline Prices: New Legislation and Proposals

Publication Date: September 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Energy

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Abstract:

The high price of gasoline was an important consideration during the debate on the Energy Policy Act of 2005, H.R. 6 (P.L. 109-58). As prices continued to surge, the continuing crisis renewed attention on some issues that were dropped or compromised in the debate over P.L. 109-58, as well as to a number of initiatives to reduce the impact of high prices on consumers.

A large number of factors have combined to put pressure on gasoline prices, including increased world demand for crude oil and limited U.S. refinery capacity to supply gasoline to a growing national economy. The war and continued violence in Iraq have added uncertainty, and threats of supply disruption have added pressure, particularly to the commodity futures markets.

Among the issues receiving new attention were vehicle fuel economy standards, leasing on the Outer Continental Shelf, and refinery "revitalization" provisions.

The gasoline price surge has stimulated much legislative activity, but without the urgency of previous energy crises. In part, this may be due to the fact that there has been no physical shortage of gasoline or lines at the pump. In addition, the expectation of former crises -- that prices were destined to grow ever higher -- has not been prevalent.

This report replaces CRS Issue Brief IB10134, Gasoline Prices: New Legislation and Proposals, by Carl E. Behrens and Carol Glover. It will be updated as events warrant.