Today, Congressman Edward J. Markey (D-MA), Chairman of the Select Committee on Energy Independence and Climate Change, released the following statement regarding Friday’s Lundberg survey indicating that the average price of gasoline has climbed to $3.07 per gallon, up 88 cents since January and surpassing the price of $3.05 per gallon that occurred the week after Hurricane Katrina.

“Americans are feeling more pain at the pump than ever before, and long before peak summer driving season,” said Rep. Markey. “While big oil companies report billions of dollars in profits, consumers, small business owners and farmers across America are worrying because they know $4 per gallon gas may be just around the corner. This situation is untenable. We must take steps to curb our dangerous dependence on foreign oil. The single biggest step we can take is to improve the fuel economy of the cars and light trucks we drive. If Congress acts immediately to pass my fuel economy proposal, we can help consumers save hundreds of dollars.”

According to the Federal Highway Administration, in 2005, U.S. cars, vans, pickups and SUVs collectively traveled an average of 11,856 miles, used 594 gallons of gasoline, and had an on-the-road average fuel economy of 20 miles per gallon. If gasoline prices stay as high as $3.07/gallon, the average driver will spend at least $1,824 per year on gasoline.

The Markey-Platts fuel economy bill would require that new vehicles achieve a 35 mile per gallon standard by 2018 and would reduce the annual cost of driving by $784, from $1,824 to $1,040. The bill, H.R. 1506, has 120 cosponsors.

The good news is that making such fuel-saving vehicles is not expensive. According to the National Highway Transportation Safety Administration (NHTSA), the average cost to the auto industry of making a passenger car that would get 35 mpg by 2017 is only $822. In just over one year, the costs associated with making more fuel efficient vehicles will be recovered by savings at the gasoline pump, and consumers would then go on to save more money over the life of their vehicles.

NHTSA's cost estimates for these vehicles are shown in spreadsheets that are available on Rep. Markey’s website, and are based on the midpoint of cost estimates contained in the landmark 2002 study of fuel economy technology by the National Academy of Sciences and NHTSA's own computer model.

NHTSA cost document 1 (PDF)

NHTSA cost document 2 (XLS)

NHTSA cost document 3 (XLS)