As I sit at home having coffee with the family after a day of gluttony, I notice this gem of locally bad economics.
From the Columbus Dispatch:
An Ohio lawmaker reacting to public discontent over the cost of gasoline wants to regulate when gas stations can raise their prices.
Sen. J. Kirk Schuring, R-Canton, has introduced legislation that would bar stations from price increases until they receive a new shipment of gas.
County auditors would be responsible for spotting violators, who would then be turned over to the state attorney general.
"The motoring public likes the idea," Schuring said.
Well, I like the idea of FREE food, shelter, and transportation for all but that doesn't make it a good idea. And in related news:
Gas-station operators are opposed to the idea.
"It’s a terrible piece of legislation," said Roger Dreyer, president of the Ohio Petroleum Marketers and Convenience Store Association, whose members operate more than 2,900 facilities in the state.
But at least they're using economics:
He said station owners need the flexibility to raise prices to pay for additional costs that may be passed along to them in future shipments.
If future prices are expected to increase, prices will rise today. That's what happened after the Hurricane sisters swept the Gulf Coast. That's what caused the windfall profits. That's what caused the $3.00 per gallon gas prices. Today's gas price in Columbus? $1.81 per gallon [1].
[1] Columbusgasprice.com is constantly updated so the price might differ from the $1.81 reported. I tried to include a screenshot to give my number some credibility but either typepad wouldn't let me do it, or I'm an idiot and couldn't figure out how. You decide.
