Richardson Opposes Lifting Gas Tax

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Richardson Opposes Lifting Gas Tax By H. JOSEF HEBERT, Associated Press Writer

WASHINGTON (AP) -- Energy Secretary Bill Richardson said Sunday he opposes temporarily lifting a 4.3 cent-a-gallon gasoline tax because of high fuel prices, but said the president ''will consider all options'' to bring relief to consumers.

A growing number of lawmakers have begun gauging whether there is enough support in Congress to suspend the federal gasoline excise tax imposed in 1993 until prices at the pump recede.

The proposal has received a cool reception among lawmakers involved in writing tax legislation, but some Republican leaders in Congress have embraced the idea, noting that the tax was imposed when Democrats held the majority -- and that Vice President Al Gore cast the tie-braking vote.

Senate Majority Leader Trent Lott, R-Miss., joined the chorus against the tax this week, calling it the ''Gore gas tax.'' The Senate began its two-week recess before considering the issue further.

Richardson, appearing on Sunday television talk shows, noted that Republicans were divided on the matter and said he didn't think suspending the tax would help because the problem is scarcity of oil.

''You would be taking $600 million a month out of the highway trust fund,'' said Richardson on Fox ''News Sunday.''

Later appearing on CNN's ''Late Edition,'' Richardson said of reducing the federal gas tax: ''I don't think that will help because the main problem is scarcity of supplies.''

Still, he did not rule out the White House going along with a tax suspension, should Congress want it. ''The president will consider all options to bring relief to the American consumers,'' said Richardson.

The 4.3 cent tax passed by Congress in 1993 increased the federal excise tax to 18.4 cents a gallon. In addition, most states have their own gasoline excise tax, with amounts varying across the country.

Richardson reiterated -- as he has repeatedly this past week -- that he expects the OPEC oil producers to increase production, although the amount and immediacy of the increases are unclear. The oil ministers meet March 27 to consider production levels.

Richardson has refused to say how much added production will be necessary, although noting that the world currently uses 2 million more barrels of oil than is being produced, drawing down inventories.

''OPEC will increase production of petroleum (and) ... you will see over the spring and summer stability in gasoline prices,'' predicted Richardson. ''It's going to go down.''

That optimistic assessment is in contrast to the Energy Department's own recent analysis that forecast rising gas prices with national average prices of $1.80 this summer, and $2 gas in some places -- even if OPEC countries substantially increase production.

The OPEC producers cut production by 4.3 million barrels a day in early 1999 to prop up prices that had plummeted to below $11 a barrel. Since then a world oil glut has turned into shortages and the price has gone as high as $34 a barrel, receding to $31.50 a barrel on Friday.

Richardson has argued that producing and consuming nations need price stability -- some producers suggest in the low $20s per barrel -- while avoiding the wild swings that have marked the past two years.

AP-NY-03-12-00 1839EST< 

http://www.newsday.com/ap/topnews/ap649.htm

-- Martin Thompson (mthom1927@aol.com), March 12, 2000


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