By Drew Hudson,
RE: Good answers to the question/concern that ending fossil fuel subsidies will raise gas prices, which are already high enough that Biden has asked OPEC to pump more oil.
“No. Ending fossil fuel subsidies will not raise gas prices.” And here’s one more excellent report (thanks Public Citizen!) about why:
Dozens of fossil fuel executives received lavish payouts before leaving their companies during the surge in oil and gas company bankruptcies in recent years, according to a new report by Public Citizen and Documented.
Ending fossil fuel subsidies will not raise gas prices. And we can know this with absolute certainty because:
- Fossil fuel companies got tens of billions of dollars in subsidies 2018-2020, paid executives billions in bonuses, and then declared bankruptcy– according to research from Public Citizen released last week. See Link above
- Research released 2 weeks ago by EESI shows that more than 95% of fossil fuel subsidies go to profits that benefit investors and executives, not workers or consumers. https://www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs. And,
- If you don’t believe in research, just believe your eyes. Oil companies like marathon petroleum got billions of dollars in subsidies from the CARES act last year and what did they do with it? They paid executives big bonuses while laying off union workers and closing refineries that make gasoline.
TLDR The fossil fuel industry is run by liars and thieves – and the only way to get control of gas prices is to invest in a just transition away from fossil fuels. Which is exactly what’s in the $3.5 trillion dollar infrastructure plan that ends fossil fuel subsidies for good.