Kansas City, Kan. - (EPA) - 6/8/2012 - Mid-America Pipeline Company, LLC (MAPCO), and Enterprise Products Operating LLC (Enterprise), of Houston, Texas, have agreed to pay a civil penalty of more than $1 million to the United States to settle violations of the federal Clean Water Act related to three natural gasoline pipeline spills in Iowa, Kansas and Nebraska.
As part of a consent decree lodged on May 29 in U.S. District Court in Omaha, Neb., and in addition to paying the $1,042,000 civil penalty, the companies have agreed to undertake various measures aimed at reducing external threats to their pipeline, enhance their reporting of spills, and spend at least $200,000 to identify and prevent external threats to the pipeline involved in the spills.
MAPCO owns and Enterprise operates the 2,769-mile West Red Pipeline, which transports mixed natural gasoline products between Conway, Kan., and Pine Bend, Minn. The settlement resolves Clean Water Act violations related to three spills that occurred along the pipeline:
A March 29, 2007, rupture near Yutan, Neb., which caused the discharge of approximately 1,669 barrels of natural gasoline directly into an unnamed ditch and Otoe Creek.
An April 23, 2010, rupture near Niles, Kan., which caused the discharge of approximately 1,760 barrels of natural gasoline directly into an unnamed ditch, Cole Creek, Buckeye Creek and the Solomon River.
An August 13, 2011, rupture near Onawa, Iowa, which caused the discharge of approximately 818 barrels of natural gasoline directly into the Missouri River. “More than 20,000 miles of pipeline, carrying oil and petroleum products, cross the states of Iowa, Kansas, Missouri and Nebraska in EPA’s Region 7,” EPA Regional Administrator Karl Brooks said. “A frequent cause of pipeline breaks is the action of third parties during farming and excavation. This settlement requires the defendants to honor a schedule of pipeline inspections on the ground and from the air, and reach out to local agencies, contractors and excavators to make sure they are more fully aware of pipeline locations and depths.”
“This settlement requires proactive vigilance to ensure that our soil and waterways are protected from contaminants,” said Deborah R. Gilg, U.S. Attorney for the District of Nebraska. “The agreement will result in safer pipeline operations and that will be good for Nebraska’s environment.”
In addition to the proactive inspections and outreach efforts, the settlement also requires MAPCO and Enterprise to spend $200,000 to relocate, cover, lower or replace pipeline segments; install new remote shutoff valves; install new physical protections such as fences or concrete barriers; and install other new equipment, structures or systems to prevent spills from reaching navigable waters.
The consent decree is subject to a 30-day public comment period and court approval.
Showing posts with label gas. Show all posts
Showing posts with label gas. Show all posts
New ethanol blend could damage some vehicles
(EWG) - 2/19/2012 - The Environmental Protection Agency’s decision on February 17 to pave the way for the sale of gasoline blended with up to 15 percent ethanol is likely to prove a nightmare for car owners who improperly fuel their gas tanks.
Every major automaker has warned that millions of vehicle warranties will be voided if drivers fill up with E15. That means consumers will pull into gas stations that could have as many as four pumps with different kinds of fuel: one for E10 (up to 10 percent ethanol); one for E15; possibly one for E85 (between 70 and 85 percent ethanol); and maybe one for old-fashioned gasoline. The EPA intends to approve E15 only for vehicles manufactured after 2000. But some gas station pumps may not even have labels specifying which ethanol blend is which, because not every state requires them.
"It is going to be extremely confusing and dangerous for consumers," said Sheila Karpf, a legislative analyst at the Environmental Working Group. "If they make a mistake and put E15 into an older car or small engine, there's a good chance they'll ruin their engine and the manufacturer's warranty won't cover the damage."
To advance consumer safety, EWG analysts have created an Ethanol Blends Guide and Fact Sheet to help drivers choose the right fuel for their vehicles. The analysis provides more information about the new E15 label requirements.
Ethanol is more corrosive and burns hotter than gasoline, properties that could cause some engines to stall, misfire and overheat. Fuel with higher ethanol blends emits more nitrous oxide and formaldehyde than gasoline, lowers mileage and damages fuel tanks and pumps.
"Instead of approving a fuel that will pose health and safety hazards and damage engines, the U.S. should invest in energy efficiency measures and research and development for truly sustainable biofuels," said Karpf. "The high cost of replacing or repairing engines will be tacked onto corn ethanol's other costs -- including higher food prices, increased soil erosion and polluted water supplies."
To be safe, EWG recommends that consumers stick with E10 or regular unleaded gasoline if they can find it. If gas pumps are not labeled, consumers should ask a service station employee for more information about the fuel and the amount of ethanol it contains. Consumers should check with their engine manufacturers or mechanics to find out if their cars or small engines can safely run on E15 or other ethanol blends.
Source: Environmental Working Group
Every major automaker has warned that millions of vehicle warranties will be voided if drivers fill up with E15. That means consumers will pull into gas stations that could have as many as four pumps with different kinds of fuel: one for E10 (up to 10 percent ethanol); one for E15; possibly one for E85 (between 70 and 85 percent ethanol); and maybe one for old-fashioned gasoline. The EPA intends to approve E15 only for vehicles manufactured after 2000. But some gas station pumps may not even have labels specifying which ethanol blend is which, because not every state requires them.
"It is going to be extremely confusing and dangerous for consumers," said Sheila Karpf, a legislative analyst at the Environmental Working Group. "If they make a mistake and put E15 into an older car or small engine, there's a good chance they'll ruin their engine and the manufacturer's warranty won't cover the damage."
To advance consumer safety, EWG analysts have created an Ethanol Blends Guide and Fact Sheet to help drivers choose the right fuel for their vehicles. The analysis provides more information about the new E15 label requirements.
Ethanol is more corrosive and burns hotter than gasoline, properties that could cause some engines to stall, misfire and overheat. Fuel with higher ethanol blends emits more nitrous oxide and formaldehyde than gasoline, lowers mileage and damages fuel tanks and pumps.
"Instead of approving a fuel that will pose health and safety hazards and damage engines, the U.S. should invest in energy efficiency measures and research and development for truly sustainable biofuels," said Karpf. "The high cost of replacing or repairing engines will be tacked onto corn ethanol's other costs -- including higher food prices, increased soil erosion and polluted water supplies."
To be safe, EWG recommends that consumers stick with E10 or regular unleaded gasoline if they can find it. If gas pumps are not labeled, consumers should ask a service station employee for more information about the fuel and the amount of ethanol it contains. Consumers should check with their engine manufacturers or mechanics to find out if their cars or small engines can safely run on E15 or other ethanol blends.
Source: Environmental Working Group
Gas Drilling Doublespeak; Landowners Speak Out
Washington D.C. – 1/11/2012 - Gas drilling companies routinely warn their investors of a litany of possible disasters – such as leaks, spills, explosions, bodily injury and even death – but regularly fail to mention these risks when persuading landowners to sign leases for drilling rights, an Environmental Working Group investigation found.
EWG researchers compared federal Securities and Exchange Commission (SEC) filings and natural gas drilling leases used by major companies engaged in hydraulic fracturing (fracking) and horizontal drilling and found that, at best, the leases offered only vague mentions of risks that are explicitly listed in the legally required SEC reports. Twenty-three landowners in five states who had signed or been asked to sign drilling leases also told EWG that company representatives who offered the leases made no mention of possible risks.
“These landowners who were left in the dark about drilling risks are likely just the tip of the iceberg,” said EWG senior counsel Dusty Horwitt, J.D. “Industry documents, regulators and lawyers all indicate that there may be thousands of landowners who unknowingly put their water, homes and health at risk by signing natural gas leases. It’s time to level the playing field so that landowners know the facts about drilling before they sign a lease.”
Federal law designed to protect investors against fraud requires companies to disclose “the most significant factors that make the offering speculative or risky.” But in the midst of perhaps the largest natural gas rush in U.S. history, there has been little or no regulation of the transactions that give drilling companies access to private lands atop gas and oil reserves.
“We were never told about any kind of risks whatsoever,” Craig Sautner of Dimock, Penn., told an EWG researcher. Craig and his wife Julie leased about 3 1/2 acres to Houston-based Cabot Oil and Gas Corp. in 2008.
Water wells serving the Sautners and 18 other nearby families were contaminated and became unusable after Cabot began drilling in 2009, according to Pennsylvania officials. Cabot, which has publicly disputed the finding, did not respond to EWG’s request for comment. The state recently lifted an order requiring Cabot to provide replacement water to the families over the objection of the Sautners, who say their well water is still contaminated. Several affected residents in Dimock, including the Sautners, have sued Cabot for damages.
The company’s 2008 10-K form filed with the Securities and Exchange Commission contains explicit warnings that appear nowhere in the Sautners’ lease agreement and that the couple says never came up in their discussions with company representatives:
“Our business involves a variety of operating risks, including: well site blowouts, cratering and explosions; equipment failures; uncontrolled flows of natural gas, oil or well fluids; fires; formations with abnormal pressures; pollution and other environmental risks; and natural disasters.
“Any of these events could result in injury or loss of human life.”
The pollution in Dimock is not an isolated incident. State officials in Wyoming, Ohio and Colorado have documented recent cases of water contamination linked to natural gas drilling, and the U.S. Environmental Protection Agency has documented serious problems associated with drilling as far back as 1987. On Thursday, Dec. 8, the EPA also concluded that fracking could be responsible for a case of groundwater contamination in Wyoming.
EWG’s report calls on states to require that companies disclose drilling risks to landowners in the same way the SEC requires it for shareholders.
The report is available online at: http://static.ewg.org/pdf/Drilling_Doublespeak.pdf.
For more information on gas and oil drilling, visit: http://www.ewg.org/gas-drilling-and-fracking.
Source: Environmental Working Group release, 12/12/2011
EWG researchers compared federal Securities and Exchange Commission (SEC) filings and natural gas drilling leases used by major companies engaged in hydraulic fracturing (fracking) and horizontal drilling and found that, at best, the leases offered only vague mentions of risks that are explicitly listed in the legally required SEC reports. Twenty-three landowners in five states who had signed or been asked to sign drilling leases also told EWG that company representatives who offered the leases made no mention of possible risks.
“These landowners who were left in the dark about drilling risks are likely just the tip of the iceberg,” said EWG senior counsel Dusty Horwitt, J.D. “Industry documents, regulators and lawyers all indicate that there may be thousands of landowners who unknowingly put their water, homes and health at risk by signing natural gas leases. It’s time to level the playing field so that landowners know the facts about drilling before they sign a lease.”
Federal law designed to protect investors against fraud requires companies to disclose “the most significant factors that make the offering speculative or risky.” But in the midst of perhaps the largest natural gas rush in U.S. history, there has been little or no regulation of the transactions that give drilling companies access to private lands atop gas and oil reserves.
“We were never told about any kind of risks whatsoever,” Craig Sautner of Dimock, Penn., told an EWG researcher. Craig and his wife Julie leased about 3 1/2 acres to Houston-based Cabot Oil and Gas Corp. in 2008.
Water wells serving the Sautners and 18 other nearby families were contaminated and became unusable after Cabot began drilling in 2009, according to Pennsylvania officials. Cabot, which has publicly disputed the finding, did not respond to EWG’s request for comment. The state recently lifted an order requiring Cabot to provide replacement water to the families over the objection of the Sautners, who say their well water is still contaminated. Several affected residents in Dimock, including the Sautners, have sued Cabot for damages.
The company’s 2008 10-K form filed with the Securities and Exchange Commission contains explicit warnings that appear nowhere in the Sautners’ lease agreement and that the couple says never came up in their discussions with company representatives:
“Our business involves a variety of operating risks, including: well site blowouts, cratering and explosions; equipment failures; uncontrolled flows of natural gas, oil or well fluids; fires; formations with abnormal pressures; pollution and other environmental risks; and natural disasters.
“Any of these events could result in injury or loss of human life.”
The pollution in Dimock is not an isolated incident. State officials in Wyoming, Ohio and Colorado have documented recent cases of water contamination linked to natural gas drilling, and the U.S. Environmental Protection Agency has documented serious problems associated with drilling as far back as 1987. On Thursday, Dec. 8, the EPA also concluded that fracking could be responsible for a case of groundwater contamination in Wyoming.
EWG’s report calls on states to require that companies disclose drilling risks to landowners in the same way the SEC requires it for shareholders.
The report is available online at: http://static.ewg.org/pdf/Drilling_Doublespeak.pdf.
For more information on gas and oil drilling, visit: http://www.ewg.org/gas-drilling-and-fracking.
Source: Environmental Working Group release, 12/12/2011
California Gasoline Demand Flat, Diesel Declines
SACRAMENTO, Calif.- (BUSINESS WIRE) - 5/31/2011 - Jerome E. Horton, Chairman of the California State Board of Equalization (BOE), on May 27 released California gasoline and diesel consumption figures for February 2011. California gasoline consumption remained flat, while diesel fuel consumption in California declined. “As California gasoline consumption remained flat, higher gasoline prices have resulted in a greater percentage of household income going to gasoline,” said Horton. “Consumers will likely continue to look for ways to use less gasoline in response to the higher prices they are now facing compared to a year ago.”
California’s gasoline consumption remained flat in February 2011 with 1.131 billion gallons of gasoline, compared to 1.131 billion gallons in February 2010. In February 2011, the average price of gasoline at the pump in California was up 59 cents to $3.58 a gallon, a 20 percent increase, compared to California’s average price of $2.99 per gallon of gasoline in February 2010. The U.S. average price of gasoline in February 2011 was up 56 cents to $3.26 per gallon, a 21 percent increase, compared the U.S. average price of $2.70 per gallon of gasoline in February 2010.
In February 2011, California’s diesel consumption totaled 176.5 million gallons, which is 19.1 million gallons less than February 2010 when diesel consumption totaled 195.6 million gallons, a decrease of 9.8 percent. However, the February 2010 figures include an additional 11.3 million gallons of diesel fuel due to an audit assessment of prior monthly reporting periods. If the audit assessment of 11.3 million gallons in February 2010 are excluded from the calculations, diesel consumption still decreased by 4.2 percent in February 2011. California’s diesel fuel figures are net consumption that includes the State Board of Equalization’s audit assessments, refunds, amended and late tax returns and the California State Controller’s Office refunds.
The average price of diesel in California rose 86 cents to $3.80 per gallon in February 2011, a 29 percent increase compared to February 2010’s average price of $2.94 per gallon of diesel fuel in California. The U.S. average price for diesel rose 28 percent in February 2011 to $3.58 per gallon, up 79 cents compared to last year in February when the U.S. average price for diesel was $2.79.
The State Board of Equalization is able to monitor gallons through tax receipts paid by fuel distributors in California. Consumption figures for March 2011 are scheduled to be available at the end of June 2011. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Elected in 2010, Chairman Jerome E. Horton is the Fourth District Member of the California State Board of Equalization, representing more than 8.5 million residents in Los Angeles County. He is also the Board of Equalization legislative committee chairman. He is the first to serve on the California State Board of Equalization with over 21 years of experience with the Board of Equalization. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The Board of Equalization collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
California’s gasoline consumption remained flat in February 2011 with 1.131 billion gallons of gasoline, compared to 1.131 billion gallons in February 2010. In February 2011, the average price of gasoline at the pump in California was up 59 cents to $3.58 a gallon, a 20 percent increase, compared to California’s average price of $2.99 per gallon of gasoline in February 2010. The U.S. average price of gasoline in February 2011 was up 56 cents to $3.26 per gallon, a 21 percent increase, compared the U.S. average price of $2.70 per gallon of gasoline in February 2010.
In February 2011, California’s diesel consumption totaled 176.5 million gallons, which is 19.1 million gallons less than February 2010 when diesel consumption totaled 195.6 million gallons, a decrease of 9.8 percent. However, the February 2010 figures include an additional 11.3 million gallons of diesel fuel due to an audit assessment of prior monthly reporting periods. If the audit assessment of 11.3 million gallons in February 2010 are excluded from the calculations, diesel consumption still decreased by 4.2 percent in February 2011. California’s diesel fuel figures are net consumption that includes the State Board of Equalization’s audit assessments, refunds, amended and late tax returns and the California State Controller’s Office refunds.
The average price of diesel in California rose 86 cents to $3.80 per gallon in February 2011, a 29 percent increase compared to February 2010’s average price of $2.94 per gallon of diesel fuel in California. The U.S. average price for diesel rose 28 percent in February 2011 to $3.58 per gallon, up 79 cents compared to last year in February when the U.S. average price for diesel was $2.79.
The State Board of Equalization is able to monitor gallons through tax receipts paid by fuel distributors in California. Consumption figures for March 2011 are scheduled to be available at the end of June 2011. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Elected in 2010, Chairman Jerome E. Horton is the Fourth District Member of the California State Board of Equalization, representing more than 8.5 million residents in Los Angeles County. He is also the Board of Equalization legislative committee chairman. He is the first to serve on the California State Board of Equalization with over 21 years of experience with the Board of Equalization. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.
The five-member California State Board of Equalization is a publicly elected tax board. The Board of Equalization collects more than $48 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.
High Gas Prices Destroy Consumer Confidence
The Bloomberg Consumer Comfort Index dropped to minus 48.9 in the period to March 20 from minus 48.5 the prior week. The measure of the current state of the economy slumped to a 15-month low.
The highest gasoline prices in more than two years weighed on families already dealing with rising grocery bills. The report showed confidence among households with annual incomes exceeding $50,000 fell to the lowest level since March 2010, representing a risk to consumer spending, the biggest part of the U.S. economy.
For full CCI results, see: http://www.bloomberg.com/cci
“Given the rise in fuel and food costs, households are clearly indicating frustration over the need to reduce discretionary spending to meet demand for basic necessities,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Even better-off households are feeling the pinch of rising prices, primarily at the pump.”
A report from the Labor Department March 24 showed the number of Americans applying for unemployment insurance fell last week. Orders for U.S. durable goods, meant to last at least three years, decreased in February, according to figures released by the Commerce Department.
Stocks rose on optimism European leaders will be able to find a solution to the region’s debt crisis. The Standard & Poor’s 500 Index increased 0.3 percent to 1,301.5 at 9:40 a.m. in New York.
The Bloomberg Comfort Index, with records dating back to December 1985, fell to a record low of minus 54 in November 2008, while the peak of 38 was reached in January 2000. Readings averaged minus 45.7 last year.
The latest results for the comfort index reflected worsening results for one of the three components.
A gauge of Americans’ views of the economy fell to minus 86 last week, the lowest level since December 2009, from minus 80.3 the prior week. The share of households with a positive view of the economy dropped to 7 percent from 10 percent.
The measure of personal finances improved to minus 5.5 last week from minus 7.7, the report showed. Forty-seven percent of those polled held positive views on their financial situation, up from 46 percent the previous week.
The buying-climate index rose to minus 55.1 from minus 57.4. Those saying it was a good time to buy needed items climbed to 23 percent from 21 percent.
Today’s report showed the strengthening labor market is doing little to lift consumers’ moods. The confidence index for Americans with full-time jobs fell to minus 38.4 last week, the lowest level since August, while it improved for those who were unemployed.
Jobless claims declined by 5,000 to 382,000 in the week ended March 19, Labor Department figures showed today, in line with the median forecast of economists surveyed by Bloomberg News. The total number of people receiving benefits dropped to the lowest level in almost three years.
Sentiment among women dropped last week to the lowest level since October 2009, the comfort report also showed.
Although elevated, little change in fuel costs last week may have prevented the comfort index from dropping even more.
The average price of regular gasoline at the pump was $3.55 a gallon on March 20, compared with $3.56 a week earlier, the highest since October 2008, according to AAA, the nation’s biggest motoring organization. The price jumped 39 cents in the three weeks ended March 13.
“Consumer confidence paused this week after a two-week rout, continuing to march in time with the price of a gallon of gasoline,” Gary Langer, president of Langer Research Associates LLC in New York, which compiles the index for Bloomberg, said in a statement. At the same time, the index is “uncomfortably near its historic low” of minus 54, he said.
Gasoline prices and the comfort index have shown a strong inverse correlation since 2004, according to calculations by Bloomberg economist Brusuelas. Additionally, changes in the four-week average of claims for jobless benefits have been in sync with the comfort gauge about 72 percent of the time.
Americans are paying more for staple food items like cereal, and costs may climb further in the next few months.
“In recent months we have announced a variety of pricing actions across our businesses,” Ken Powell, chief executive officer of General Mills Inc., the maker of Cheerios, said yesterday on a conference call. “Food manufacturers are managing through a period of rising and volatile costs for food ingredients and energy.”
The Bloomberg Consumer Comfort Index is based on responses to telephone interviews with a random sample of 1,000 consumers aged 18 and over. Each week, 250 respondents are asked for their views on the economy, personal finances and buying climate; the percentage of negative responses is subtracted from the share of positive views and divided by three. The most recent reading is based on the average of responses over the previous four weeks.
The comfort index can range from 100, indicating every participant in the survey had a positive response to all three components, to minus 100, signaling all views were negative. The margin of error for the headline reading is 3 percentage points.
The responses are broken down by participants’ sex, age, income level, race, region of residence, political affiliation, marital and employment status.
Could Illinois Benefit from Higher Pump Prices?
By Diane S.W. Lee (Illinois Statehouse News) - 3/8/2011 - Illinois workers had to start paying more out of their pocket as a result of the state’s 67 percent income tax hike in January. Now, Illinois drivers are paying more out of their pocket at the gas pump.
Political turmoil in the Middle East has created higher prices at gas pumps across the nation. But while drivers pay more at the gas pump, the state will pocket the money from the state’s gas sales tax, said Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association.
“Usually when prices get up in this range in between $3.50 to $4 a gallon, I think you either see a flatness of volume or actually volume going down,” he said. “And on the sales tax side of things, the government will see an increase.”
According to the Illinois Department of Revenue, the statewide tax on gasoline or gasohol is 19 cents per gallon, and 21.5 cents per gallon on diesel fuel.
Revenue spokeswoman Sue Hofer did not have an estimate for the amount the state has collected in gas sales tax since the prices started climbing in late February. She said drivers will need to be more flexible.
“How flexible is someone’s budget, and how flexible are their driving habits?” Hofer asked.
According to AAA’s Daily Fuel Gauge Report, Illinois consumers are paying an average of $3.62 for a gallon of regular gasoline, up about 83 cents from a year ago. Statewide, consumers paid an average of $3.27 for regular gas a month ago, according to the report.
When gas prices are high, people are more conservative with their finances, Fleischli said.
“It stifles your spendable income you have,” he said. “They’ll go into our stores and still buy the things they need — milk and those kinds of things. But they won’t buy the soda pop and candy, things that are impulse buying. That seems to take a hi, when prices get higher than usual.”
While regular drivers can absorb the cost of higher gas prices by driving less and carpooling more, truckers who drive for a living may get hit with the cost at the pump, according to Don Schaefer. He is executive vice president of the Midwest Truckers Association, which represents 3,000 Midwest trucking companies.
“Unfortunately in the trucking industry, in all transportation industries, it’s driven by the fact that you have to have goods and services moved from Point A to Point B on a timely schedule,” he said. “The consumer demands it. The shipper demands it. And there is really no option. You’ve got to make the delivery.”
According to AAA, a gallon of diesel fuel in Illinois is costing on average $3.86 a gallon, up 90 cents from a year ago, and up 32 cents from a month ago.
Story courtesy of Illinois Statehouse News. Originally published on 3/7/2011
Political turmoil in the Middle East has created higher prices at gas pumps across the nation. But while drivers pay more at the gas pump, the state will pocket the money from the state’s gas sales tax, said Bill Fleischli, executive vice president of the Illinois Petroleum Marketers Association.
“Usually when prices get up in this range in between $3.50 to $4 a gallon, I think you either see a flatness of volume or actually volume going down,” he said. “And on the sales tax side of things, the government will see an increase.”
According to the Illinois Department of Revenue, the statewide tax on gasoline or gasohol is 19 cents per gallon, and 21.5 cents per gallon on diesel fuel.
Revenue spokeswoman Sue Hofer did not have an estimate for the amount the state has collected in gas sales tax since the prices started climbing in late February. She said drivers will need to be more flexible.
“How flexible is someone’s budget, and how flexible are their driving habits?” Hofer asked.
According to AAA’s Daily Fuel Gauge Report, Illinois consumers are paying an average of $3.62 for a gallon of regular gasoline, up about 83 cents from a year ago. Statewide, consumers paid an average of $3.27 for regular gas a month ago, according to the report.
When gas prices are high, people are more conservative with their finances, Fleischli said.
“It stifles your spendable income you have,” he said. “They’ll go into our stores and still buy the things they need — milk and those kinds of things. But they won’t buy the soda pop and candy, things that are impulse buying. That seems to take a hi, when prices get higher than usual.”
While regular drivers can absorb the cost of higher gas prices by driving less and carpooling more, truckers who drive for a living may get hit with the cost at the pump, according to Don Schaefer. He is executive vice president of the Midwest Truckers Association, which represents 3,000 Midwest trucking companies.
“Unfortunately in the trucking industry, in all transportation industries, it’s driven by the fact that you have to have goods and services moved from Point A to Point B on a timely schedule,” he said. “The consumer demands it. The shipper demands it. And there is really no option. You’ve got to make the delivery.”
According to AAA, a gallon of diesel fuel in Illinois is costing on average $3.86 a gallon, up 90 cents from a year ago, and up 32 cents from a month ago.
Story courtesy of Illinois Statehouse News. Originally published on 3/7/2011
