When Connecticut State Comptroller Nancy Wyman closed out the books on the fiscal year last week, she announced that the state surplus had soared to $470.2 million, which was $56.8 million higher than her projection just a month ago. Over the course of the year, the state collected $275.4 million more than was anticipated, and the state sales tax exceeded projections by $61 million. This substantial surplus, when coupled with rapidly inflating gasoline prices at the pump, which are now flirting with the $2/gallon mark, make Governor John Rowland’s successful campaign for a 7-cent-a-gallon rollback of the state gasoline tax, from 32 cents to 25 cents a gallon, seem prophetic.

The gas tax cut went into effect last Saturday, just in time for the Fourth of July weekend. Many motorists noticed, however, that a concomitant drop in prices in the pump was not immediate. In most cases, gas stations were not gouging the consumer but simply selling off the gas they already had in their tanks at the 32-cent tax rate, which they were allowed do under the law. The law does require, however, that the entire 7-cent decrease in the gas tax be passed along to the consumer. The state’s Department of Consumer Protection has promised to have inspectors deployed across the state to ensure that gas stations are deploying, but as is the case with many government inspection programs, there will be too few inspectors to prevent abuses. Every motorist, however, can become the eyes and ears of the Consumer Protection Department. The state agency has set up a toll-free hotline at 800/842-2649, which will take calls from drivers who suspect price gouging at the pumps.

As we have seen in the past, the price of gas closely follows the laws of supply and demand. The 7-cent reduction in the price of a gallon of gas will mean very little if we are unable to slake our national thirst for gasoline. Just as the price of gas is driven by supply and demand, the law of supply and demand is driven by demand. If we want to see the price of gas come down, we as consumers must demand that the cars and trucks that we want to drive be made more fuel efficient. If government were to make the demand, the automobile industry would fight it with lobbyists and in the courts. But if customers in automobile showrooms make the demand, the auto industry will listen. There are signs that it already is listening.

 Two years ago, the auto makers agreed to conduct cooperative research that would increase the fuel efficiency of SUVs by 50 percent by the year 2004. That research and development can be accelerated now if we, as consumers, start paying closer attention to the fuel efficiency ratings on the stickers in the auto showroom. If we do that, perhaps $2 a gallon will be the high water mark for gas prices in Connecticut over the next few years, rather than the base from which a new round of increases is launched.