Americans have many choices that are denied to citizens of other less-fortunate nations. But we forget how many decisions are made for us, sometimes out of necessity, such as paying taxes; sometimes out of greed, such as the monopolistic actions of oil companies in denying many Americans the ability to purchase alcohol-based fuels at their corner gas station.
Through various rules imposed on gas stations, oil companies limit many of us from using existing, safe, alternative fuels, like E85, and make available only more expensive, environmentally harmful gasoline. For example, gas stations owned or franchised by an oil company have contracts that often prevent them from adding a pump or adding to an existing pump to sell E15 or E85. Gas stations are also generally required to buy fuel from their parent oil companies, which don’t sell E15 or E85. Most oil-company-owned stations and franchises are generally precluded from putting an alternative-fuel pump under the covered island or space out front as well. Stations also face restrictions on advertising alternative fuels as an available product and oil-company pricing limits competition from alternative fuels.
Congress has refused to enact open fuels legislation, which would require oil companies to open up their gas stations to other fuels. Public and private sector advocates, as well as nonprofit groups, are working to enact policies that would convert older cars to flex-fuel vehicles (FFVs) and encourage Detroit to build more FFVs. Such policies could unlock a large consumer market for alternative fuels and generate a positive market reaction among independent gas companies and, perhaps, even some smart oil companies.
Given the recent discussions on oil and gas exports, a possible compromise might allow increased exports only if the oil companies agree to require their stations and franchises to offer alternative fuels in a primary space alongside gasoline. A bit of tat for tat is in the public interest. Let freedom ring for consumers! Let capitalism mean competition for gasoline and alternative fuels at your nearby gas station! Oh, I forgot, alternative fuel station!
Would you support legislation that requires oil companies to make alternative fuels available at their gas stations? What are the barriers to opening fuel markets to consumers?
The United States and other countries should be planning for a next-generation multi-fuel service station infrastructure to enable the transition away from oil consumption. This is a key part of… Read more »
Mr. Goldberg’s article is interesting. I believe multi service of fuel stations are the wave of the future. Its a chicken and egg argument to some extent. Can we secure… Read more »
Just like supermarkets and drug stores, fuel stations should be places that motorists can have a choice of options, plainly labeled. Brazil is the most advanced country in this regard,… Read more »
Mr Sklar and I are in general concurrance. M
Fuel freedom is a great thing. Why am I not free to purchase 100% pure gasoline at the local gas station and put it into my car without the corrosive… Read more »
Mr Kiefer goes out of his ideological way to argue against competitive fuels. Natural gas, ethanol and methanol are better for the environment and the consumer’s pocket book that gasoline. … Read more »
Lee thoughtful comments. My comment at the end of my piece was purposely a hypoth…”might”…..The oil industry has long argued drill baby drill, yet they ask for increased rights to export crude. … Read more »
Mr. Kaplan wants Washington to try to use its crude oil export ban as a threat with which to blackmail oil companies into revising their contracts with retailers. He hopes… Read more »
Lee, my comment in response appears above your orig. response. somehow computer got tempermental. M
Marshall, thank you for your clarification. In response, I would merely again note that the structure of the retail fuel market implies that vertical tying arrangements are not a main… Read more »
Lee..enjoy the dialogue. I think we both need to step back abit from a bsolute wisdom. I dont have it. Again, I was musing rhetorically on the tit for tat re.… Read more »
Marshall, do you really propose to base current policy on sunk costs? Your argument about subsidies appears to do just that. An across-the-board end to all subsidies and mandates would… Read more »
Oh…Lee…I didnt suggest an end to the oil subsidies although most larger companies dont need them and could do quite well without them. I suspect careful analysis of the variety… Read more »
Oil companies are business, they’re not going to install pumps (or force their franchisees to do so) for exotic fuels that have limited markets, whether it’s E85 or compressed natural… Read more »
Steve, I guess anything is possible in America. Or almost. The oil industry does unfortunately limit their franchises ability to move toward building the capacity to sell alternative fuels…..like natural gas based ethanol. Why… Read more »
As Kiefer, Lane, et al suggest, rather than being “clean,” ethanol’s costs and harmful externalities outweigh any benefits it provides. In the extensive discussion here, I did not notice much… Read more »