Rising gasoline prices are giving Gov. Sean Parnell a new argument to make in favor of the oil tax reduction he’s pushing.
Parnell on Thursday said passing House Bill 110, currently stalled in the Legislature would boost oil production enough to reduce gasoline prices.
“If we can get more oil production in the line, if we can get more supply, that helps reduce the cost,” Parnell said.
Parnell has said he wants billions of dollars in oil tax reductions, which he hopes will provide an incentive to the state’s oil companies to produce dwindling supplies of oil at a faster rate.
He’s also proposed a suspension of the state’s gasoline tax, currently 8 cents a gallon, the lowest in the nation.
Parnell didn’t say whether he believed oil refiners would sell gasoline to Alaskans at below market prices, or whether additional Alaska production would drive down world oil prices.
Alaska currently produces about 600,000 of the 8.2 million barrels of petroleum products produced per day in the United States, according to the federal Energy Information Administration. Parnell has set a goal for the state of boosting production to 1 million barrels per day.
Parnell also recently began a renewed effort at passing a gas tax suspension, which he introduced in January of 2011 but which has not moved in the Legislature.
Representatives of the House and Senate Transportation committees, both of which have versions of the tax suspension bills, say they’ve recently gotten requests to hold hearings on the governor’s bills. That’s likely to happen in two weeks, they say.
Rep. Peggy Wilson, R-Wrangell, chairwoman of the House Transportation Committee, said she doubted the bill had a chance of passage in either chamber, but that she’ll hold the requested hearing.
When the governor’s gas tax bills were first introduced, top legislators said suspending the gas tax could hurt the state’s ability to get federal transportation money.
Wilson said suspending the tax could give other states “ammunition” to argue against the large share of federal transportation dollars that go to Alaska.
“It shows people in Washington that we’re not willing to pony up and pay our fair share,” she said.
While it would be good to be able to give Alaskans a tax break, she said doing so “might be cutting off our nose to spite our face.”
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (9)
Add commentAlaskans are being told a lie
This is just really bad information to tell the Alaskan people because producing more oil will not bring fuel prices down. Oil prices are determined by the world markets and over 80% of the oil futures markets are controlled by speculators. Speculators are what drives oil prices up and more production will not bring prices down.
I also found Sean Parnell's comment last night “it’s not the means, it’s the end” really disturbing, because the means do matter. As I sat listening it became very clear to me that we have Big-oil goons running our state. I was thoroughly disgusted and if we don't get these land destroyers out of our Governors office they could be running the show untill 2018.
Parnell is trying to spur investment at the expense of everything else that Alaskans hold dear. Alaskans need to take a stand.
Yup, he's lying again!
“If we can get more oil production in the line, if we can get more supply, that helps reduce the cost,” Parnell said.
Every industry economist will tell you that the Alaska pipeline flow will have no impact on gasoline prices.
Prices won't go down, but oil company profits will certainly go UP! And so will Parnell's campaign donations and signing bonus.
We need a governor who isn't in thrall to the oil companies. Heck, I'd even take Sarah back at this point.
I just learned that there is
I just learned that there is a refinery in Anchortown but it mainly produces jet-A for Uncle Ted's Airport. Why can't they expand that to make gas and sell it to us?
Dangerous Governor
It seems that the governor is intent on turning us into a 3rd world state that can be robbed outright by the oil companies. With our permanent fund and a fair share of the oil income, we are setting a bad example for nations abroad which might demand a similar deal. If successful, the governor's actions will bloat "the 1 percent" and push down "the 99 percent" even more than is the case at present.
Huh:
Pelosi in 2008:
Prices at the pump are a pain for all of us, but Pelosi is accusing Bush of policies that have driven up the prices, and says she has a solution to bring prices down immediately,
“Mr. President, do not fill the strategic petroleum reserve with oil at record highs. Instead, take out the oil that we bought at a lower price, to bring down the price of oil, to reduce the price at the pump,” says Speaker Pelosi.
Pelosi in 2012:
“Wall Street profiteering, not oil shortages, is the cause of the price spike,” Pelosi said in a statement.
So, Obama says drilling for more oil won’t bring down the price of gas, but Pelosi back then, and some of Obama’s advisors now, say to release oil from our strategic reserves to bring down the price of gas. That must really be some magical oil in our reserves if adding more of it to the market will bring down the price of gas, but adding more oil to the market from drilling won’t affect gas prices at all. Which way is it you leftist clowns?
GAS PRICES
More Parnell spin and lies!!!!
Mil?? ...If you are a
Mil??
...If you are a speculator investing in oil futures you pull out of the market when you know reserves will be released..result = lower prices
The 8 cent per gallon tax the
The 8 cent per gallon tax the governor is so eager to claim he "cut" is a dedicated tax to leep the highways minimally repaired on an ongoing basis without fighting over how much to spend each year, which is what we did before we deceided to make sure we always had enough to fix naturally occuring wear and tear on our roads. This would look good on the resume, but further inspection reveals it would gut a vital source of road repair funds. An in-state gasline to tidewater is the best tool to lower ALL the energy costs across this state. That debate has been made. The market just across the pacific is starving for long-term dependable and affordable LNG. Selling into that market will insure a low in-state tariff under AGIA, and ANGDA get`s a 30% discount on top of that from being a "partner" in AGIA. AGIA did include the option of a large LNG option to tidewater. Believe me it is the only option on the table for Alaska, as well as the best one. This gas tax cut is a sham.. he`s asking us to give away TWO BILLION A YEAR! to companies making RECORD PROFITS IN ALASKA! Now just how dumb does this governor think the Alaskan people are? And we like our roads fixed Governor, without a fight for funding each short season.
Tax cuts for oil companies cures cancer!
Seriously, where does this guy make this stuff up? As latitude said, increased production rarely means an instant price decrease at the pump. There are too many world factors involved.
As such, this newest claim by our oil lobbyist governor rings as hollow and false as all his previous claims regarding cutting taxes for his oil buds.
I wouldn't be surprised if he next claims that cutting taxes on oil companies cures cancer, hemorrhoids and arthritis.
He has lost all credibility.
Alaskans see these screams for tax cuts for exactly what they are: Corporate welfare. Giveaways. Quid pro quo.
I really wish he'd take a cue from his predecessor; Go rogue. Resign.