Auto Execs Urge Government to Tax Fuel up to $8/Gallon to Increase Fuel Efficiency

Jason Mick
DailyTech
November 7, 2009

[efoods]CEO at leading parts supplier: “Energy independence…ultimately means that fuel has to be more expensive”

It’s no secret that when gas prices dropped early in the year and with the recession in full swing, hybrid sales saw their first drop in years. Faced with tough new fuel economy restrictions, auto executives had come up with all sorts of unusual suggestions — such as cutting crash testing — but now had to puzzle over a new dilemma; what if consumers don’t want the higher-priced electric vehicles that they plan to start flooding the market with in less that a year?

At a special Reuters summit in Detroit, numerous auto industry executives are cited as suggesting that the government raise taxes on gasoline substantially to spur the adoption of fuel efficient vehicles. States Tim Leuliette, chief executive of privately held parts supplier Dura Automotive, “In the United States, we’re afraid to touch the fuel price. We’ve got to continue to raise taxes in the United States so that, by the end of the next decade, gas is about $8 a gallon in today’s terms.”

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