The auto industry has historically been one of the biggest opponents of a government regulated floor on fuel prices, but General Motors CEO Rick Wagoner says he would be in favor of such a move. In fact, Wagoner says a tax to keep fuel prices above $4 a gallon is “worthy of considerationâ€.
Fuel taxes have been a hot topic since gas prices topped $4 last year, with plenty of support on both sides. However, Wagoner’s pro-tax stance is one of the first from within the auto industry.
“Everybody talks about $4 a gallon because, until gas prices hit $4, nobody saw any shift in consumer behavior,” Greg Martin, GM’s Washington, D.C., spokesman, told the Washington Times. “Only then did people put fuel efficiency front and center.”
Although GM was caught flatfooted when gas prices spiked last summer, GM’s future lineup of fuel-efficient vehicles banks on higher prices at the pump. If gas prices continue to hover around $2 per gallon, consumers will have little incentive to switch to more fuel-efficient models, such as GM’s upcoming Chevrolet Volt .
As it stands now, the federal gas tax is set at 18.4 cents a gallon, which means it would have to be raised to over $2 a gallon to keep a $4 floor on gas.
