• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Cap and Trade's Effect on Diesel Prices

    Do you drive a truck or a farm tractor? If not, do you use any products grown on a farm or shipped by truck? Well, here’s some news: The Waxman-Markey energy tax bill will make all those products more expensive.

    By artificially restricting use of fossil fuels (which provide 85 percent of America’s energy), the Waxman-Markey bill will drive up energy costs of all sorts. One example is the price of diesel fuel. By 2012, the first year of the Waxman-Markey caps, diesel fuel prices are expected to have risen to $3.75. Waxman-Markey would tack on another 20 cents.

    And that’s only the start. Because the legislation mandates ever-tightening restrictions on fossil fuel, the tax on diesel continues to rise. Even after adjusting for inflation, this tax will hit $1.38 by 2035.

    Though diesel cost most directly affects truckers and farmers, the higher price will filter through the economy and impact all consumers. The chart shows the Waxman-Markey energy tax per gallon of diesel fuel adjusted for inflation to 2009 dollars.

    diesel-prices

    Posted in Energy [slideshow_deploy]

    18 Responses to Cap and Trade's Effect on Diesel Prices

    1. Lynn B. DeSpain says:

      THERE IS NOT SUCH THING AS A FOSSIL FUEL! But be that as it may, our idiots in D.C. have made it very clear, they do not have the best interest of the American Citizens in mind when making all of these insane rules! Since when does America allow anyone to dictate what and how we do things! We allow no other Country to do this, nor should we allow our own Federal government to go beyond its binding limits set forth within our Declaration of Independence, our Bill of Rights, and our Constitution and its Amendments! If we do, this Republic is dead.

      Hozro

    2. richard gessford says:

      The people that run this grov. have no understanding how to run this country; We need to replace most of congress, starting with the heads of the house and senate. The president comes and go's congress think it's a life time job;

    3. Roni, North Carolina says:

      This article is very imformative. I was in the trucking business for 21 years, and owned 4 trucks. I had to leave the industry I loved because I could not afford to buy the fuel, hold the maintenance, pay the road taxes that are continully climbing, plus paying the high cost of base plates, and worry about keeping my drivers paid. I finally had enough and with deep emotions, I took my trucks and trailers back to the dealership I bought them from, losing alot of money in the process, and had them all sold. This Waxman-Markey cap is going to put truckers out of business. All the things we have in our homes, the cars we drive, medical supplies, food, etc. is going to be so high the average American will not be able to afford what they need. We have got to somehow put a stop to these taxes. I live in NC, one of the highest taxed states, and I realize they can, and are going to go higher. My sympathy goes out to the truckers who are already struggling, and to the farmers who have been in trouble for the last several years. We won't be able to afford the products grown on the farms, because the diesel fuel cost will be so expensive, the farmer will not be able to pay the trucker his cost for the hauling, which in turn will affect the farmer, and needless to say, America suffers. Without trucks…America stops.

    4. Tenn Slim Atoka says:

      All

      Considering that diesel fuel drives the vast majority of 18 wheelers across the USA, that the harvesting machines used from June to October in the Plains states, that the trains carrying our heavy materials are ALL diesels, that the tugs moving commodities up and down the Big Muddy are diesels. ETC. It is certainly not hard to extrapolate the logistics. For every increased dollar spent on fuel, the cost of the moved commodity, harvested crop, increases also.

      By 2035 we will be exactly where the OBNA goals are set for, a 3rd or 4th world economy, controlled by the Left.

      End

      Semper Fi.

    5. Barry Lillie, Bakers says:

      I would be curious to know if the railroads are going to be subject to this tax as well. They are generally not taxed by the states, as they don't operate on the roads. This is why, by the way, you see long trains of trailers on flatbed rail cars. Since they don't pay much tax, it is cheaper to send cross-country loads by rail!

    6. Al Smith says:

      Why has no-one talked about the 2 TRILLION BARRELS of Sweet Oil that is in the BAKKEN Oil fields of North Dakota,Montana and lower Alberta. Please let the rest of the US know that we need to get this information out before Cap and Trade. The Bakken Field will produce oil at this current level for next FOURTY YEARS. I have seen oil rigs all over this oil field drilling to this day. Plus on the Crow Reservation in Montana they are building a CTF (Coal to Fuel)Plant, its located on Sarpy Creek. The US owns 24% of the worlds coal here is the answer. I just dont know why some one has not talked about these Energy projects.

    7. Pingback: Cap and Trade’s Effect on Diesel Prices « Conservative Thoughts and Profundity

    8. pankratz, Opheim, Mo says:

      As an American farmer, I experienced high diesel prices a year ago and watched what it did to our local economy. It basically shut down. I have no doubt that rough days are ahead for all of us, if this cap and trade goes through.

    9. Elwyn Maloy Sheridan says:

      This will have a big impact on the cost of food for the nation. The faux-science on global warming is killing our economy. This bill must be defeated.

    10. Chris in Nixa, Misso says:

      The truckers should shut this Country down NOW in protest of the high fuel costs. A full fledged Nationwide strike of non-union truckers would handcuff Obama and Kill The Bill. A truckers strike can happen at any time, and last for as long as needed. It can be organized in different sectors of the Country at different times as needed to shut the freight, food, medical supplies, produce, machinery and all other goods off the market. Wall Street will take notice!

      The disruption of Interstate Commerce NOW will demonstrate the impact on our free market of Commerce later with the mandated price increases driving owner/operators and leased equipment out of business with fewer small business hauling companies available, causing longer delays and further increases in freight bills, passing these costs onto the consumer and inflating the costs of all goods again, and again , and again until no one can afford to purchase them.

      The truckers can bring these politicians to their knees and save America at the same time by keeping the keys in their pocket. That's a "Convoy" I could support!

    11. Linda, Savannah, Ga says:

      Global warming/cooling whatever they are calling it now is a farce. The only ones who will benefit ($$$$$)from the Cap & Trade Legislation IF IT PASSES in the Senate will be Al Gore and his deluded followers. Our economy does not need Cap & Trade we need jobs created by preparing/repairing our oil refineries and drilling for oil in U.S.;restarting and building Nuclear plants;Solar and wind requires structure/grid retooling.

      Reshaping our future for energy independence starts with U.S. workers picking up tools.

      The longer we have able men & women out of work, our economy will languish.

      False ups in the Stock Market do not reflect unemployed workers finding jobs but carrot dangeling creating false hope that 'someone sees something' on the horizon.

    12. Thomas, Sackets Harb says:

      In 2007, the last year I was in the trucking industry, they came out with new emissions standards for truck engines. The new engines raised the price of a truck $6500. In 2009, they put in newer standards, and raised the cost of an engine another $10000. In 2010 – new standards again, and another $12000 per engine. So the cost of a truck engine has gone up by $28,500 in just a few years. Who do you think will be paying for this? Here's the real catch – the engines emit less per gallon, BUT BURN MORE FUEL PER MILE. So the net effect is probably negative. Have they realized that, in their new, perfect world, a head of lettuce will cost $10 just due to these transportation costs?

    13. Teresa Jaskiewicz, W says:

      Cap and Trade Bill must not pass. It will create added hardship (and high costs) for anyone who uses any kind of energy. This is a bill that works against the people living in the United States. Instead of penalizing Americans with such an outrageous bill, let us build nuclear energy plants, drill for natural gas and oil we have right here in the USA.

    14. gander wisconsin says:

      Abort Gore…. and then tear his house down. That alone would eliminate enough pollution for me to live a million years….

    15. jim sardis,ms says:

      there is no doubt,what this bill will do to all energy cost as well as fuel.the sad thing,is that we have resources that could provide taxes that are being lost now due to reduced demand for gasoline if we drilled domestically.even with the previous republican administration,there has been no push to drill for oil.even Newt Gingrich is opposed as was McCain.the entire global warming is a hoax that is only going to make GE,T.Boone Pickens,Al Gore and all the politicians wealthy.the Chinese and Indians are laughing at how stupid we are.

    16. Dennis,California says:

      Who are these people (Waxman, Pelosi, Reed etc.) that want to control our lives like this. They continue to want to impose themselves and their ideaology on us regardless of cost or popular concensus. Lets get back to the basics of the Constitution which limits the Federal Governments control over the states and individual freedoms. The liberals are forcing this country into a direction I don't believe most folks do not want to go. We desperately need term limits on these career politicians and their back room deal cutting.

    17. Roger S., Ma. says:

      The stories on these blogs all follow the same pattern, exposing a government plainly out of touch with reality. Be it cap&trade, nationalized health care, constitutional justice, national education, the stymulus (spelling intended) package, all of these appear to arise from somebody's phantasy world. Calling it even wishful thinking would dishonor the noble concept of thought.

      Somehow these projects all remind of "Lamarckism". The reader may remember that Lamarck was a biologist who claimed, contrary to Mendelian genetics, Darwin's theory of natural selection (actually he preceded Darwin who disproved his theory), and millennia of experience in plant and animal "husbandry" since the stone ages, that biological entities could pass on to their offspring traits acquired during their life-span, as opposed to only those traits for which genetic information was already present at birth. The horror arose when in the 20's and 30's Soviet bureaucrats convinced their government under Stalin to give these long discredited theories the "big try" on collectivized Ukrainian farms. The objective was, last not least, to upstage the Capitalist countries by disproving Capitalist biological science. Almost needless to say, none of the pie-in-the-sky yields which were predicted were ever realized, and the failures served to further undermine the farmer-serfs' morale to the point where millions starved and the Soviet Union was forced to "borrow" grain from its arch-enemy, US!

      Who will we "borrow" from when all of this government madness produces failure upon failure, especially when we've had to borrow heavily even to fund the attempts?!

      To "drive" home the point, the various suggestions here for a truckers' strike -I think, one day, nationwide, will do fine- are excellent. The next day should be a teachers's strike, nationwide. Then a health-care professionals' strike, a lawyers' strike, and so on. Let Congress and the Executive know that we're tired of this BS and that "we, the people" are taking back our powers; because they are ours, and are merely on loan, pending good behavior, to the officials we pay!

    18. MARTIN BOWN INDIANOL says:

      To all incumbents come Nov of 2010 get in the unemployed line.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×