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| Hawaii Passes Gas-Price Cap Law |
| 2005-07-22 |
| Uh, guys - apparently none of you all understand the most basic laws of economics. But don't worry - you'll get a memorable lesson shortly. Starting about September 2. They may call it paradise, but Hawaii is no heaven when it comes to gas prices. "Oil companies have been able to earn super-competitive profits at the expense of Hawaii's consumers," saids State Sen. Ron Menor, who helped pass the nation's first state cap on gas prices set to go into effect Sept. 1. Now is anyone surprised this guy is a Donk? The law mandates the state Public Utilities Commission (search) "impose a price ceiling on wholesale gasoline prices that reflects competitive market conditions" and to foster "the opportunity for prices to reflect and correlate with competitive market conditions," reads the statement by the Division of Consumer Advocacy, available on its Web site. But oil industry lobbyist Melissa Pavlecik disagrees with the idea of capping prices. "Every expert who has looked at the industry has concluded that the price is higher here because of taxes, No, really? the remote location and other market forces. No one has ever found price gouging in Hawaii," she says. Economists also warn that, unless companies can make a profit they won't send their gas to Hawaii. Duh! And even if it doesn't affect the main islands, critics say oil companies may stop sending gas to outer islands -- where delivery costs are higher. Gas station owners have their own objections. The new law is meant to control prices by putting a cap on what wholesalers can charge, but station owners fear they'll be squeezed as the oil giants raise rents to make up for lost profits. "They're playing a shell game. That's what legislatures do. With other people's money. They're lowering my price of gas, but then they've increased my cost of doing business. So I have to recover that cost somehow," gas station owner Barney Robinson said. If that happens, Hawaii's revolutionary gas cap could result in even higher prices at the pump. Ya' think? |
| Posted by:Barbara Skolaut |
| #9 But government control worked so well in the Soviet economy ... oh, wait ... Rationing in 3 ... 2 ... 1 ... |
| Posted by: DMFD 2005-07-22 23:50 |
| #8 Well, at first the cap will raise all prices to meet the cap. And then, of course, "discounters" with adulterated gas will pop up, offering lower prices for gas that is not entirely gas. Then others will start importing really cheap but poor quality gas, like Mexican high-sulfur and its rotten egg smell. And *then* market forces will kick in, and gas stations might start restricting how much gas they will sell. From that point on, the descent into chaos continues in earnest, until the donks are replaced with a republican administration--which is already starting to look likely. |
| Posted by: Anonymoose 2005-07-22 22:39 |
| #7 They should read: The Government Against The Economy, by George Reisman. Published in 1979 and highly focused on gas shortages and related market problems -- all of which are caused by government intervention. What's next, a price cap on hotel room rates? |
| Posted by: Kalle (kafir forever) 2005-07-22 22:34 |
| #6 Oh, good God... these people are just like geese: every day a brand new world. Didn't they learn anything from Gray Davis's experiments with electricity in California?????? |
| Posted by: Dave D. 2005-07-22 22:07 |
| #5 There's going to be a significant reduction in demand for gas in Hawaii as a result of hotel reservation cancellations. They should have pretty cheap gas by Thanksgiving. Barbados and Tridad and Tobago turned down joining Hugo's Caribbean oil economy. Get your flights and rooms reserved now. |
| Posted by: Mrs. Davis 2005-07-22 21:56 |
| #4 Man what saps. They will get no gas. Too freeking bad. Such fools. |
| Posted by: Sock Puppet 0’ Doom 2005-07-22 21:23 |
| #3 I'll tell 'em what they need SM. >:> |
| Posted by: Shipman 2005-07-22 21:19 |
| #2 Each according to his need, Shipman. |
| Posted by: Secret Master 2005-07-22 20:43 |
| #1 It should be free to all and suppied in quantity according to their use to society. |
| Posted by: Shipman 2005-07-22 20:25 |