Cutting tax subsidies for petroleum companies would raise gasoline prices
Experts agree cutting tax subsidies to oil companies would have little effect on gas prices
Cutting tax incentives for oil companies would have little to no effect on prices at the pump, according to energy experts. For instance, the former head economist for the petroleum industry trade association said the effect would be small.
Michael Canes, a distinguished fellow at the Logistics Management Institute and former chief economist of the American Petroleum Institute, wrote that ending subsidies to oil companies would have "very little" effect on oil prices. He went on to say that there could be "Some small effect if at the margin domestic production is adversely affected, but I suspect that effect would be very small indeed." Many other energy experts agree with Canes.
In addition, the nonpartisan Congressional Research Service said in a 2008 report that the “market price of crude oil and natural gas, or even of refined petroleum products, such as gasoline, would not be expected to increase very much, if at all,” if the domestic production tax break were rescinded.