Standby Energy Conservation and Gasoline Rationing Plans

Gao ID: 108914 March 26, 1979

With the recent increase in United States reliance on crude oil imports such as the current Iranian situation jar the nation and underscore the importance of progress in energy conservation. Periods of tight supply and upward pressure on prices are likely to continue as crude oil production capabilities peak. Strong energy conservation programs can mitigate the adversity of future Iranian-type occurrences and reduce the likelihood of oil embargoes being used as economic weapons. The Department of Energy (DOE) has completed standby plans restricting weekend gasoline sales, the temperatures of public buildings, and advertising lighting. These measures have the potential to help manage a future petroleum shortage, but tradeoffs between equity and workability are necessary, DOE leans toward workability. To meet the goal of a 5 percent reduction in crude oil consumption, private initiative will have to be relied upon, including personal driving and gasoline consumption in commuting to and from work. Switching from oil to other fuels will also bring substantial savings. The standby gasoline ration plan is another proposed measure; it would base the issuance of coupons on vehicle registrations, including the foreseeable development of a "white market" in ration certificates, which DOE is willing to tolerate. A final proposal is to impose a Federal excise tax on gasoline to balance supply and demand.



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