AAA Commentary

Motorists are once again feeling the pain of record-high gasoline prices. For the second time in two years, soaring and erratic gasoline prices in the United States occurred before the start of the summer driving season. In Colorado, at press time, the statewide average for regular, self-serve, unleaded gasoline was $1.80-the highest record price ever, and ahead of last year's peak of $1.69 during the July 4 holiday period.

The price hikes appear to stem from lack of investment in refining and distribution capacity, industry consolida- tion and policy decisions made over the years on how to meet desirable environ-mental objectives.

AAA, which has tracked the price of retail gasoline-and motorists' reactions to it-for more than 25 years, believes the key to stabilizing gasoline prices and supply is to identify the needs and expect-ations that are most important to the end users of gasoline, the motorists.

First, our 44 million AAA members tell us they value a clean environment and don't want to give back the gains we have made in air quality. In truth, motorists want both clean air and reasonable gasoline prices. Motorists will consider the purchase of more energy efficient vehicles, as well as lower emission or alternative fuel vehicles, if a successful case can be made for these cars and trucks in the marketplace. These vehicles must be safe, reasonably priced, cost-effective to fuel and service, and what is sometimes overlooked-they must have a fair resale value after several years of use.

Second, motorists want stable gasoline prices. Families want to accurately budget for the gasoline credit card bill. They want to forecast the expense of fueling their older car or a new car they might wish to purchase, and they would like to know in advance the cost of a summer driving vacation.

Motorists nationwide may even be willing to accept some of the burden of switching to a single, cleaner burning fuel. Today's patchwork of regulations requiring 14 different blends of cleaner burning summer-grade fuel throughout the nation makes little sense. Now could be the time to start moving toward a single gasoline standard that benefits the environment, motorists and the fuel industry.

Third, motorists want adequate and secure energy supplies. Perhaps no national security issue is better understood by Americans than the need for adequate domestic oil production, strong trading alliances with reliable oil-producing countries and the need to keep sea lanes open so oil can be freely shipped. Similar attention must be paid to ensuring that our domestic refining and gasoline distribution infrastructure is maintained and expanded to meet increasing demand, and that adequate inventories of gasoline are available at all times to meet national emergencies.

Lastly, motorists want to be sure no one is taking advantage of them at the pump. The fuel industry is incredibly complex. Reasonable oversight by federal and state authorities may help ensure that motorists are treated fairly.

Release of the Bush Administration's energy plan sets the stage for a long-overdue debate on the nation's energy future. Consumers expect Congress and the White House to work together to develop plans and policies that will meet the nation's current and future energy needs. Unless current bottlenecks in the energy supply chain are addressed with a comprehensive and long-term strategy, we will continue to be frustrated by shortages and periodic gasoline price hikes.

Widespread acceptance of good energy conservation practices by all consumers lay the foundation for wiser, more long-term use of finite resources. AAA urges motorists to do their part by being frugal consumers of energy.

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