Mike Hatch is at it again.
He's joined a group of state attorneys-general in calling on the administration for a probe of gas prices:
In a letter to President Bush, the group of chief law enforcement officers asked him to direct U.S. Attorney General John Ashcroft "to join with us in investigating whether the oil and gas industries are colluding to drive up the cost of gasoline.''And those states would be...:
The letter was signed by officials from California, New York, Connecticut, Arizona, Minnesota, Rhode Island, Iowa and Arkansas.Hm. Seven blue states and a small red state. Go figure.
Of course, like many of Mike Hatch's actions, there really is no overriding point:
It is not illegal under U.S. law for a company to act on its own to restrict supplies or close a refinery that may lead to higher pump prices.I guess it's Posted by Mitch at May 21, 2004 07:04 AMOil companies are also permitted to practice so-called ''zone pricing,'' where they charge different gasoline prices in a specific location or city, which often result in pump costs being higher at service stations located just blocks apart.
These wouldn't be the states with the highest gasolene taxes, would they?
Posted by: Silver at May 21, 2004 07:47 AMI checked: http://www.energy.ca.gov/gasoline/statistics/gas_taxes_by_state_2002.html
Minnesota, Arkansas, Alaska and Iowa are at or slightly below the national average of 42 cents per gallon.
The other four states had taxes near the top of the list.
Not enough to call it a factor in and of itself, I'd say.
Posted by: mitch at May 21, 2004 08:34 AMPart of the reason why gasoline costs vary so much between States is that many States have specific reformulation requirements (e.g. so much of it needs to come from ethanol) which means that a gallon of gas sold in Texas may not necessarily be able to be sold in Minnesota or California. Which means then that refineries cannot simply mass produce gasoline for the entire country but have to make specific batches for specific States/regions which makes it more expensive and also creates bottle necks in the supply.
IMNHO is the attorneys general really are concerned about why gasoline is so expensive in their States (even though it’s cheaper than bottled water and pretty cheap when you adjust for inflation), they ought to look at what their own reformulation requirements of their States.
Posted by: PJZ at May 21, 2004 09:40 AMI heard something on the radio that Christine Gregoire (Attorney General/Democrat candidate for governor of Washington) was getting involved in this. The report I heard indicates that what they are calling for is a criminal investigation. Up here in the Seattle area we have even higher prices than most (regular is over $2.40 in places right now here) and I still think this is pretty much shameless grandstanding.
Posted by: Vexorg at May 21, 2004 02:45 PM