Waxman-Markey Bill Will Raise Gasoline Prices, Say Refiners

Oil refiners, who will likely have to purchase large numbers of emissions allowances, are complaining that they will be responsible for 44 percent of U.S. carbon emissions but will only receive 2 percent of allowances.

By contrast, according to the Wall Street Journal, the electricity sector produces about 40 percent of the nation’s CO2 emissions and under the bill would receive about 35 percent of allowances. Another 15 percent of the free permits would be allocated to industry.

Refiners are predicting that some refineries will be forced to close, increasing dependence on fuel imported from countries with less stringent regulation. The cost of compliance will be passed on to consumers in the form of higher gasoline prices, they say.

The National Commission on Energy Policy, a bipartisan group, projects that compliance could increase gasoline prices by between 28 and 54 cents per gallon by 2030—although initial costs would be much smaller.

But oil refiners aren’t the only producers complaining about the bill.

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