We're at war: put on your armor and stand ready to battle.

• Author: Cutler, Debbie
• Position: From the Editor

With fuel prices topping $3.79 a gallon for regular gasoline, oil greater than $125 a barrel for the first time ever (May 9), and rumors flying that Rep. Don Young is proposing a $1 fuel tax, the public has a right to cry foul.

Even Alaska's oil industry, flush with new money from skyrocketing profits for its product--Alaska crude--is facing challenges as transportation, construction, exploration and other expenditures are rising as quickly as the cost of oil.

It seems like a lose-lose situation for Alaskans who are forced to rely on the oil companies to continue growth at a time when it seems better for oil's bottom line to wait and watch the market.

POCKETBOOKS

Of worldwide consumption of oil, the U.S. uses 20 percent, and two-thirds of that goes toward transportation. That is why we are seeing rising grocery costs and a run for staples such as rice and flour, leaving the shelves bare and pocketbooks empty. As oil prices rise, so will food prices. It appears we are in a Catch 22 with no end in sight.

$4 A GALLON

It's not a matter of if, but when, gas will hit $4 a gallon or higher. Experts say soon, and some are already paying that premium price, such as those who live in rural Alaska, Hawaii or parts of California. Economists expect the U.S. dollar will continue to weaken, which will push fuel prices still higher, perhaps as high as $200 a barrel within the next two years.

WHAT'S THE SOLUTION?

According to Gov. Sarah Palin, the State government is taking a "methodical approach to long-term solutions" by moving rural communities off diesel to cleaner and cheaper alternatives.

"The State treasury is swelling while the family checkbook is evaporating," she said. "As prices continue to rise, we cannot wait for medium- and long-term solutions to come into place." She said she would address...