This transcript is automatically generated
We -- -- topic the last gasoline that we having years.
Well that -- good news to environmentalists it is creating panic for states who did and not revenue from their gas tax.
More than a dozen states are now looking at ways to make up the cash and you can bet that one way -- the other.
You are going to be the ones footing the bills are here to sort it all out it's Patrick behind.
Senior petroleum analyst yeah -- -- dot com that's -- welcome back to the show thanks for coming on thank you.
This turning into a real problem you know we'll get -- MasterCard -- as saying it.
Yeah they were an -- gives back up in the last week or so what we hit you know historic low in terms of the amount of gas that we're using.
Federal fuel efficiency standards passed last year require that by 20/20 five our cars are almost twice as fuel efficient as they are now.
So Steve's really in a buying because all of a sudden they're saying -- no you know people are using less gas -- -- revenue right.
-- they're freaking out a lot of you know obviously highlighted the basics here a lot of state governments.
Looking at -- ways to allow protect their revenue streams and they've seen those revenues streams shrinking in the last few years and everybody's looking -- ideas and you -- -- That there may not just be one simple answer Virginia's looking at one type of tax they're looking at scaling back the gas tax and raising.
Sales taxes there are other ideas being -- -- but there's seems to be no shortage.
Of ideas and you can bet that something's going to happen here with the majority of these states is searching.
From yeah now.
No it's fascinating to see how different the solutions are mean you mentioned Virginia we have governor Bob McDonnell by recently.
And he was talking about getting rid of the tax gasoline tax altogether and -- state.
Which I was ready to -- hoot and Holler that sounded like a great Megan and I realized that he was just shifting.
-- -- -- higher sales tax that would replace the revenue because that was rising faster but there are other states.
That are trying to raise the gas tax is facing the revenue going away so they're -- -- sort of grip on to whatever they can't there.
I don't know what do you think is more effective if you're trying to generate revenue -- -- what's the impact will it.
-- -- there's certainly a lot of craft the ideas out there with politicians and I think motorists need to pay attention to what is going on because is obviously going to factors in the long run now.
In there there's a huge debate is it fair.
For governments to charge.
Tax is based on whether or not you drive how much you drive what is fair here there been some ideas looked -- that have to do with a GPS and tracking how many miles you drive obviously.
That's no mistake if you're somebody that transports things or.
What have you and it's good for the folks that use mass transit and don't drive and also.
And there are there are so many different options on the table so many different states it is obviously huge complex issue there's now and -- right now.
There has the same gasoline taxes and -- some states are very low some states gasoline at Texas had an increased in forty years a look at the prices of yeah constructing roads so.
He certainly something's gonna have.
-- a new tax that things that you want to discourage I mean that's like the basic we did the economics of the situation works out right so if you tax gasoline more I mean you you're so close to the data and you watch this all the time.
Will people drive any alas I mean will they get rid of the revenue that they're getting as it is or are we kind of at the point -- be hard pressed to drive -- -- why it it would be hard pressed to drive less obvious -- there there's still potential that people can drive last say they still can become more efficient or carpool more often.
But the higher prices go the more demand destruction destruction there is and you will force people eventually.
To look at different.
Different ideas -- you'll you'll force Americans to become more fuel efficient which.
Brings us to this huge debate this is why we're here in the first place gas taxes have been so.
Low for this amount of time but now gas prices are the reason why Americans have been cutting back.
-- -- the governments are looking to catch up with the rising gas prices by instituting more sales tax -- or gasoline tax or you know GPS based tax.
Lot of ideas on the table obviously have said then not.
Certainly the the underlying motive here is they need more revenue.
Absolutely have to talk about that would next time organ Washington Vermont wanted to get in the car with -- in tax year vehicles by the miles you drive that's the key thanks -- coming on we appreciate it.
-- and can have been.