
The price of regular gas on Long Island hit $4.461 a gallon on Sunday – an increase of 81 cents from a month ago and $1.60 since last year.
What’s to be done?
For starters, we should not complain. Not at a time when Russia is bombing hospitals and schools in Ukraine, millions of its citizens are fleeing with only the shirts on their backs and what they can carry and the country’s military and remaining citizens, grandmothers included, fight against a larger, better-equipped army willing to use terrorist tactics.
Nationally the price of gas at the pump has risen 75 cents since Russian President Vladimir Putin began his military buildup at Ukrainian borders in December.
Since then NATO and the United States have imposed unparalleled sanctions on Russia with President Joe Biden also slapping a ban on Russian gas.
And even before the White House moved to curtail Russian oil imports, several global energy companies — including Shell, BP and ExxonMobil — had voluntarily agreed to suspend their operations in Russia.
The alternative for the United States and its allies was to stand by and do nothing in the face of Russia’s barbaric assault on Ukraine. Or start World War III with Russia by attacking its fighter planes and anti-aircraft installations.
With atrocities rising in Ukraine and Putin’s intentions beyond Ukraine still uncertain, we still may be drawn further into the conflict.
But for now, the Biden administration is doing what should be done and that means we will pay more at the pump as a price for helping Ukraine defend its freedom.
So what about gas prices?
New York Republicans as well as Democrats such as U.S. Rep. Tom Suozzi, who is running for governor, have called on Gov. Kathy Hochul to suspend New York’s 46-cent-per-gallon gas tax.
Hochul has not ruled out suspending the gas tax, but she correctly noted that such a move might not result in lower prices at the pump.
Robert Zimmerman, a Democratic candidate for New York’s 3rd Congressional District, has endorsed House and Senate legislation to suspend the federal gas tax through 2022.
There is no doubt that an increase in gas prices impacts almost every aspect of our lives, including the transportation of goods we buy as well as our own transportation.
Especially hard hit are the less affluent among us and those facing long commutes to work. For them, higher gas prices can be financially crushing.
A short-term fix could provide relief, but there are downsides to lifting the taxes that should be considered.
Hochul is correct that suspending the gas tax does not guarantee that prices will come down. Last year, oil companies spent a good portion of their huge profits on dividends and stock buybacks.
So any suspension of the gas tax should include some mechanism that ensures the benefits of the taxes being suspended get passed on to consumers.
Another downside is that the benefit of reduced gas prices gets passed on to everyone – those who can afford the higher prices and those can’t.
A less costly way to offset the increase in prices would be to target those who face long commutes and those in financial need.
Another downside is whether suspending the gas tax actually works as intended.
That’s because the best way to reduce the cost of gas is to drive less. And the higher the price the greater the incentive to drive less.
For instance, the early months of the pandemic caused a global drop in demand for oil. In turn, crude prices fell to $18 per barrel. But as the economy recovered in recent months, so did demand for crude. As of April 2021, the average price for a barrel of crude oil was around $60 a barrel but it had doubled to about $125 by last week.
Higher gas prices do benefit the United States oil industry, which has been a net exporter in recent years.
But it is also the largest source of revenue for Russia and other major oil exporters, such as Saudi Arabia, the United Arab Emirates and Venezuela – dictatorships that have refused to sanction Russia or increase their production.
Not to mention the devastating cost of gas and oil on the environment.
So what are the ways that people on Long Island can drive less?
One that became all too familiar during the pandemic but certainly accomplishes the goal is working from home.
We have had two years to adjust to remote work and many businesses have found that the same work can be done as well if not better from home.
With COVID receding, many people look forward to returning to work in-person. But many do not – preferring the savings in time and costs of commuting.
Again, we must recognize that this primarily benefits white-collar workers.
Another alternative is a return to public transportation.
In the case of Nassau County, that means the Long Island Rail Road and here the news is very good.
LIRR ridership fell to around 40 percent of 2019 levels during the pandemic and, according to Phil Eng, the outgoing president, it ticked up to 45 percent to 48 percent in January.
So there is plenty of capacity for commuters seeking to avoid driving.
Even better news is LIRR construction projects that are coming online in 2022, including the 3rd track and Eastside Access, which will allow commuters bound for the East Side of Manhattan to stop at Grand Central Terminal instead of traveling to Penn Station and then back.
Eastside Access will save East Side-bound commuters as much as 20 to 30 minutes each way – enough to persuade many more people to take the train, especially if New York City imposes congestion pricing.
The 3rd track and Eastside Access will not have an immediate impact on the rising cost of gas at the pump, but it is not too soon to prepare for the benefits that will be reaped by the county.
Home values, for one, should see an impact in the reduced commute times for people working on the East Side of Manhattan.
Village and town officials could also address the lack of affordable housing by taking full advantage of transit-oriented housing near LIRR train stations to serve people who live in Nassau but commute to work in New York by train.
All the while reducing demand for gas and oil.
There does need to be an immediate response to the rising prices of gas that will probably get worse before it gets betters.
But the most obvious response may not be the best response short term or long term.
Please note that as of this morning, gasoline futures are down 75% from their March 3rd peak.
That’s what a crisis is in this country: a two week cycle of hyperventilation over something the market would take of itself.
We should be back to our regularly scheduled crime “problem” in short order.
$4.09 on Peninsula Boulevard today, and not even trying hard. Retailer gouging is the problem. Wholesale prices at NY Harbor and pipeline are below $2.80. Eliminating gas taxes just invites more infrastructure deterioration. Deeper, bigger potholes and delayed bridge repairs are the tip of the problem.