Fees and Deregulation.-The following fee structure is assumed: a $1.20 fee on imported products on April 1, 1975; and a reduction of the import tariff to $2 on all imported petroleum and natural gas liquids and the decontrol of crude petroleum prices on May 1, 1975. The Comparisons The following tables and figures present recent consumption experience and forecast consumption for each of the assumptions given above. For each of motor gasoline, distillate and residual fuel oil, and all petroleum products taken together: the four time series are illustrated for the period 1969-1975 and separately for 1974 and 1975 on a larger-scale; the four time series are expressed in percentage terms with Series I=100%. The three remaining series are plotted in percentage terms with respect to Series I; a table with yearly average consumption figures in thousands of barrels per day and a table giving year to year percentage changes. For 1974 actual consumption fell below those levels which were anticipated before the economic downturn and higher prices (as given in Series I). Even when higher prices and lower income are taken into account, first quarter demand is still lower than "expected" due to the embargo. In the summer of 1974 a surge of post-embargo "pent up" demand may be noted. However, in the last quarter of 1974 demand returns to "expected" levels determined by the forecasting procedure. Series Total Petroleam Products Consumption Pre-Embargo Forecast Incore and Weathen Bffects Price Effects added to Income and Weather Effects |