Record oil import costs fueled 2008's massive trade deficit, Lugar says

New US Census Bureau statistics confirm that record petroleum imports were a major source of 2008's $677.1 billion trade deficit, US Sen. Richard D. Lugar (R-Ind.) said on Feb. 11.

The figures show that Americans spent $453.3 billion on imported oil last year, about two-thirds of the total trade deficit, according to Lugar, the Senate Foreign Relations Committee's ranking minority member. Imported crude cost a record average price of $95.23/bbl during 2008, he added.

Last year's imported oil costs reached nearly $1,500 per US citizen, Lugar said. Noting that he has proposed a $1/gal gasoline tax which would be offset by reduced payroll taxes or rebated to consumers, he said that its proceeds could be used to develop alternatives and reduce US dependence on crude oil imports.

"The hundreds of billions of energy dollars sent to dangerous regimes abroad could be spent to build a new energy economy here," Lugar said.

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