FTC FINDS 17 BILLION DLR COST IN OIL IMPORT FEE
An oil import fee could cost
consumers nearly 17 billion dlrs a year and undermine long-term
U.S. energy security by leading to a quicker depletion of 
domestic reserves, a Federal Trade Commission study said.
    The study by the FTC's bureau of economics found that a
five dlr a barrel tariff on crude oil and gasoline oil imports
would increase costs to consumers by 14 to 16.7 billion dlrs a
year.
    After weighing the benefits of such a tariff against the
costs, the study found a five dlr a barrel import fee would
have a net cost to the economy of 3.6 billion dlrs a year.
    Several oil import fee proposals ranging from two to 10
dlrs a barrel have been made in Congress in an effort to cut
the federal budget deficit and maintain the momentum for energy
conservation programs, which have been hurt by cheaper oil.
    But by making foreign oil more expensive, the tariffs would
reduce oil imports and force greater consumption of domestic
oil, which would deplete U.S. reserves faster, the study found.
    "Any attempt to increase our energy security by limiting
imports will actually reduce our long-run energy security by
speeding the depletion of domestic reserves," the study said.
    The five dlr a barrel tariff would also cut domestic
petroleum refiners' profits by 7.5 to 10 billion dlrs a year,
increase domestic crude oil producers' profits by about 13
billion dlrs a year and raise government revenues by 6.7 to 
8.2 billion dlrs a year, the FTC said.
    Under the Reagan administration, the FTC has consistently
opposed government regulation of the oil industry at the state
and federal levels.
    "This study backs up my belief that government regulation
and interference with competition hurt both the market and
consumers," FTC Chairman Daniel Oliver said in a statement.
 Reuter
