Basing energy policy on any one fuel or one source is risky. The U.S. needs to enhance the security of its energy supply, and a prudent energy policy must be based on the availability of diverse fuels.
Different regions favor different fuels.
Around the world, dependence on oil is a concern, and many regions and countries are adopting policies to reduce gasoline use.
- In the European Union, tax policies encourage diesel use over gasoline. In Europe, gasoline is taxed at about $4 per gallon, compared to about $3 per gallon for low-sulfur diesel. This tax policy is one reason why more than 50 percent of European autos are fuel-efficient diesel, compared with less than 1 percent in America. By contrast, the U.S. taxes diesel more than gasoline, effectively discouraging its use. In the U.S., gas is taxed at 38 cents per gallon, and diesel is taxed about 20 percent more, at 45 cents per gallon.
- Many countries are investing in alternative fuels. Brazil is noteworthy for its ethanol, but other countries have taken action too. The EU wants biofuels to replace 10 percent of petroleum by 2020.
In the U.S., different regions favor different fuels.
Even in the United States, there are regional differences in fuel use, reflecting different lifestyles and priorities.
- In Minnesota, the state with the most ethanol fuel stations in the country (318), consumers purchase more ethanol-capable autos. In 2006, nearly 10,000 flexible fuel vehicles were sold in Minnesota.
- In Texas, where many people need to drive great distances and haul heavy loads, diesel vehicles are popular. In 2006, more than 52,000 diesel vehicles were sold in Texas.
- California leads the nation in hybrid vehicle sales, and state incentives like access to HOV lanes helped spur sales. In 2006, 43,000 hybrid-electric vehicles were sold in California.
America needs more alternative fuels available for autos.
Alliance members support enhancing energy security through alternative fuel autos, the most effective way to reduce gasoline use.
- Automakers sold over 2 million alternative fuel autos in 2007 and are working to sell even more in 2008.
- There are almost 70 models of hybrids, clean diesel and ethanol-capable autos offered for sale. The list is available here.
- More than 12 million of these alternative fuel autos are on U.S. roads.
As a country, we need to work together to ensure diverse energy supplies are available to run the alternative fuel autos being sold today and in the future.
Different regions in America demand different fuel options.
