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F I S C A L I M P A C T R E P O R T

SPONSOR Lujan, B

ORIGINAL DATE

LAST UPDATED

3/12/07

HM 95

SHORT TITLE Investigate Gasoline and Diesel Fuel Disparity

SB

ANALYST Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Attorney General’s Office (AGO)

SUMMARY

Synopsis of Bill

House Memorial 95 requests that the Attorney General investigate the disparity between the

decline in gasoline prices and the decline in diesel fuel prices as well as the disparity between the

absolute prices in the two fuels.

FISCAL IMPLICATIONS

According to the Attorney General, a study of the disparity between the price of gasoline and

diesel fuel would require the Attorney General to assign at least two staff members to complete

the task. It is anticipated that an economist with experience in gasoline pricing and one support

staff would be required to perform such an investigation. It is anticipated that the Attorney

General would have to shift resources within the office and take staff away from other

assignments to conduct such an investigation because no funds are included within the HM 95 to

pay for an investigation.

SIGNIFICANT ISSUES

According to testimony presented to the U.S. Senate Energy and Natural Resources Committee,

taxes influence the price disparity between the two fuels.

EO/mt