Time has Come to Label Fuel with Country of Origin

October 6, 2009

BY Tom Buis

It is often said that American consumers can move the world's economy with their spending decisions. In most cases, there is federal policy to help consumers make well-informed decisions, based on knowledge about the product's quality, its maker or its origin.

Country-of-origin labeling is an effective way to inform consumers. Almost all consumer products, from clothing to cars, from fresh tomatoes to canned tuna, have a federally mandated label telling the consumer the identity of the country of origin. That label ensures consumers can make informed decisions about how to spend their dollars—decisions that sometimes have major implications.

It is time for country-of-origin labeling standards to be applied to the automobile fuel market in the United States. Consumers should know at the pump whether the gasoline they are pumping is derived from foreign oil.

Why is this important? Because, as concluded in a widely available study conducted by the Center for Forensic Economics, every dollar spent on foreign oil means the U.S. economy loses as much as $1.55 to foreign economies. That massive transfer of wealth amounts to more than $1 billion per day leaving the United States— as much as $500 billion when gasoline prices spike. On top of that $1 billion-per-day leak from our economy, taxpayers must also pay an average of $50 billion annually for the costs of protecting oil shipping routes, according to a study by Institute of the Analysis of Global Security.
This is the true cost of our nation's addiction to foreign oil, and it is hidden from consumers.

By mandating country-of-origin labeling on automotive fuel, consumers will be able to find out if their gasoline is refined out of oil from Canada, Venezuela, the United Arab Emirates, or whether it includes domestically produced gasoline. It can be labeled as simply as: "This gasoline is refined from oil imported from Canada and Niger, and is blended with ethanol made in the United States."
Market transparency based on country-of-origin labeling is a key to changing spending habits and increasing demand for ethanol.

American ethanol is the only existing alternative to gasoline today that is creating jobs in the United States, while cutting greenhouse gas emissions and reducing our dependence on foreign oil. Country-of-origin labeling for fuel will let consumers know if they are pumping a domestically produced fuel, such as ethanol, or fuel from a foreign source.

Gen. Wesley Clark, Growth Energy's co-chairman, unveiled the labelmyfuel.com initiative at the Farm Progress Show in Decatur, Ill., where it was warmly received by farmers, ethanol producers and the media. Growth Energy has already begun talking to lawmakers in Washington, D.C., about a bill that would establish standards for country-of-origin labeling on fuel. It is our intention to move on this as soon as we can, but we expect stiff resistance from our opponents, who would do anything to put ethanol out of business and fully intend to keep consumers in the dark about the ramifications of their spending choices.
The American ethanol supporters who make up Growth Energy intend to fight for country-of-origin labeling on fuel. It is an idea whose time has come.

Tom Buis is the CEO of Growth Energy. Reach him at TBuis@GrowthEnergy.org or (402) 932-0567.

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