You'll Pay Billions -- And It'll Still Cost you More at the Pumps

You'll shell out $22 billion in tax breaks and corporate welfare to big energy companies through Washington's new energy bill. But the bill won't save you a penny at the gas pumps. In fact, it could cause gas prices to rise.

The AAA estimates the national average price of a gallon of gas hit $2.22 this week. And President Bush, while demanding Congress send him the energy bill for his signature -- admits it won't do anything to ease gas prices. Speaking to the US Hispanic Chamber of Commerce, the President said:

"I wish I could simply wave a magic wand and lower gas prices tomorrow. [The bill] wouldn't change the price at the pump today. I know that, and you know that."

The New York Times suggests the rising gas prices have cut into the President's approval ratings and his comments on the energy bill are designed to make his administration look more proactive on gasoline prices.

But Rep Steny Hoyer (D-MD) found a report from President Bush's own Energy Department that says the bill will actually raise gasoline prices by 3-cents a gallon at the pumps. (NYT)

[Crossposted at BlogCritics.org]