Gas Prices Take a Holiday for Memorial Day Weekend

Prices for unleaded gasoline backed off historic highs for the Memorial Day weekend, but that didn't stop the abundance of hand-wringing over what, if anything, to do about surging costs.

A gallon of regular gas cost an average of $3.209 on Monday, off the all-time high of $3.227 reached Thursday, according to AAA. That's up from the $2.924 price of a month ago, and the $2.854 that gas cost for the 2006 Memorial Day holiday.

AAA had been forecasting record travel for the weekend, leading some to suggest that the controversy over gas prices was much ado about nothing.

As Jerry Taylor, senior fellow at the Cato Institute libertarian think-tank, suggests, the price of gas is being driven by simple consumer demand and Congress ought to stay out of it.

"Maybe symbolic blather is the best we can hope for from Congress under the circumstances, but it would be nice if the federal code were something other than the product of a freshmen dorm-room bull session," Taylor said in a statement. "High pump prices are not reducing demand because they are not imposing anything like the economic pain politicians allege."

Such sentiments, though, haven't stopped legislators from bandying out their proposals to lower prices at the pump.

House Republican Whip Roy Blunt, (R-Mont.) rolled out legislation last week that would limit the amount of so-called boutique fuels in the supply system. The fuels are so named because they are specially formulated according to varying specifications among communities.

According to Blunt, limited supply of such fuels drives up their costs, affecting motorists who must use them.

"The simpler and more uniform our gasoline supply is, the easier it is to get to market and the cheaper it is for consumers," said Blunt, who has introduced similar legislation the past two Congresses. "This legislation would reduce the number of 'boutique' fuels currently in the system, benefiting consumers by preventing these specialty blends from driving up the price."

Meantime, Consumer Reports released a survey that offers credence to both camps.

The Auto Pulse Survey, which asked 1,804 motorists their feelings about the gasoline situation and how it might affect their driving and buying habits, found mixed emotions. While many said they were concerned with fuel efficiency, they also expressed a hesitance about giving up luxury to achieve better mileage.

Nearly 70 percent of those surveyed who will be buying new vehicles said fuel efficiency would be a concern, while half said they would consider a diesel, hybrid or flex-fuel vehicle.

But when asked whether what they would be willing to sacrifice to achieve that goal, only 52 percent said size or capacity, while 49 percent said they would give up range, 48 percent said performance, and 44 percent amenities.