The folks over at The Oil Drum have come together to issue a consensus press release, essentially arguing that both Republicans and Democrats are headed in the wrong direction on gasoline prices. Party leaders seem to think that oil companies alone set the price of gasoline. This is false. The American people need to understand that high gas prices cannot be attributed to a single source. They also need to understand that neither political party will be able to fix the gas problem.

The major factor that determines gasoline prices is the price of the crude oil from which gasoline is refined. When crude oil prices are high, so are prices at the pump. Other factors that affect the price of a barrel of oil are outlined in the press release and detailed in other posts on the site, including a great outline of the issue titled “Record Oil Company Profits and High Gas Prices: A Connection?”

Indeed, this seems the perfect time to be highlighting the facts and spreading the word — Senate Republicans are proposing to buy off the American people on behalf of the oil industry (as opposed to the usual buy off on behalf of tax cuts for the rich) — and Senate Democrat Minority Leader Harry Reid is similarly trying to build support for an amendment to provide immediate relief to consumers on gas prices (luckily his blog allows comments and so far almost all, including myself, are rightly criticizing the proposal).

(As an aside, Democrats need to learn to stop using the conservative talking point of “relief for taxpayers” — I feel that “relief for gas buyers” is just as bad. No; America needs to escape from grip of the oil pushers, as the President himself has admitted we are addicted to oil.)

What can we do instead of giving presents to the oil industry? After all, eliminating the gas tax, temporarily or permanently, would only worsen our dependence on oil by stifling the innovation of oil alternatives and oil conservation efforts. Instead we should further subsidize alternative sources of energy, fund mass transit and carpooling programs, provide incentives to buy smaller and more fuel efficient vehicles, and promote campaigns to increase awareness about conservation and energy issues.

Understanding the causes of these rising prices is fundamental to choosing a response to them. This editorial in the Boston Globe says it well: “Political leaders should be explaining energy economics and devising policies to mandate conservation instead of searching for scapegoats.”

We Americans need the courage to face our oil dependence head on. We need our leaders to help show the way.