Congress lies to you about gas prices


Annual summer snooker dance begins
Let's go to the link, shall we?

Congress is desperate to show it feels your pain at the pump.

The House today voted, 284-141, to pass a bill that would make gasoline price gouging a federal offense.

In the Senate, Democratic leaders were scrambling to introduce a new energy bill, the first since they took control of Congress. A committee also held a hearing on whether oil industry mergers had contributed to higher fuel prices.

And the day before, members of both parties ignored a presidential veto threat and approved legislation that would subject the Organization of the Petroleum Exporting Countries to price-fixing lawsuits.

Record high gasoline prices have drivers grumbling nationwide. Members of Congress have particular cause for alarm as they prepare to recess for a week for Memorial Day, the traditional start of the summer driving season.

"I was at a funeral Saturday, and when the monsignor greeted me, he said, 'My God, Bart, you have to do something about these gas prices!' " said Rep. Bart Stupak (D-Mich.), chief sponsor of the anti-gouging bill.

Again, the Federal government gets more of the price at the pump than the gas companies do. If the gasoline producers are price gouging, the FedGov is price gorging. Most State taxes on gasoline are higher than the Federal tax, so the State cut of the price is even bigger.

Second, refinery capacity took a hit. Since no one wants a new refinery in their back yard, that is going to make prices even higher.

Third (and this one is REALLY important), many states have different formulations of summer gasoline required by law. So gasoline formulated for northern Arizona can't be sold in California, which makes the prices higher in both Arizona and California.

If you have noticed how much of the higher gasoline prices result from government action, congratulations!

It doesn't stop there of course. Emphasis added.

Curro is a gas station owner who has stopped selling gas to his own customers.

After selling gas at N. 124th and W. Burleigh streets for 20 years, Curro turned off his pumps at his Shell station in Brookfield when the price he was being asked to pay was just too much.

Including the wholesale cost of gas and other taxes and charges, he was being asked to pay $3.44 a gallon Friday, a day when the competing stations down the street were selling gasoline for $3.47.

"Three cents a gallon doesn't cut it," Curro said. "It doesn't pay the bills."

Here's this year's special ingredient (hat tip Reason Hit & Run).

Requires fines and penalties collected under this Act to be deposited in a separate fund in the treasury to be known as the Consumer Relief Trust Fund to provide assistance under the Low Income Home Energy Assistance Program (LIHEAP) administered by the Secretary of Health and Human Services.

If lower prices result from less government interference, which do you think might be cheaper, free market gas or government mandated prices along with a Federally funded aid program to low income consumers?

— NeoWayland

Posted: Thu - May 24, 2007 at 01:19 PM  Tag


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