Despite Rhetoric, Cutting Oil Subsidies Would Have Little Effect on Gas Prices

by Nicholas Kusnetz
ProPublica, May 12, 2011, 10:19 a.m.

Democrats renewed their push to cut oil subsidies this week, saying high gasoline prices and big revenues for oil and gas companies make this as good a time as any to eliminate billions in annual tax incentives to the industry. Republicans countered that higher taxes on oil companies would only mean higher prices for consumers.

Most experts agree, however, that the tax incentives in question don’t have much effect on gasoline prices, one way or the other.