As gas prices shoot up (again), the U.S. House votes against price gouging
It's astounding how every day now seems to bring another report of gas prices on the rise. Today, the national average for regular fuel is $3.227, according to AAA. We can all predict this isn't the top of the charts for gas prices this year, so let's just file this under T for temporary. Also, if we adjust for inflation, gas prices are just a few cents shy of a truly historic "highest price ever," according to NPR. To follow up with some related news, the Associated Press' H. Josef Hebert writes that the U.S. House of Representatives has taken the bold step of approving legislation yesterday to outlaw gasoline price gouging. The measure passed 284-141, even though there are a lot of problems with the bill. For one, the proposal only goes into effect if the president declares an energy emergency, and it's limited to 30 days. The Senate will look at energy legislation next month, which is also when they debate raising CAFE standards.
Like some of our readers who left comments on the original post, opponents of the gouging bill pointed out the vagueness of the language used to describe the gouging. Rep. Joe Barton, R-Texas, told the AP that, "I don't know what `unconscionably excessive' means."
It may be hard to prove gas companies are charging 'unconscionably excessive' prices for their wares, but $3.23 a gallon is getting to be pretty excessive for people standing at the pump, don't you think? Who wants to guess where we'll see the American national average peak this summer?
[Source: AAA, Associated Press / H. Josef Hebert]
Reader Comments (Page 1 of 1)
frank78 5:46PM (5/24/2007)
As I stated on the previous related post, this House bill is an insult to our intelligence. The Federal Trade Commission has done investigations of allegations of 'price-gouging' and they have always come back with no evidence to back such a claim.
We have I believe less than half of the refineries we had 25 years ago, while the number of drivers has obviously gone up quite a bit and the average number of miles driven per vehicle per year has gone up about 3000 miles.
What the heck do ya expect??
Besides, we're not the only ones in the world experiencing increased petroleum prices- everyone is.
The disconcerning thing part of this is that the ignorant want to point a finger at oil companies and car manufacturers. Yet no one wants to look in the mirror at all for blame.
This House bill is all political posturing that will never do anything and is not intended to ever do anything.
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Tim 5:55PM (5/24/2007)
I hate to say it but $4.03
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Karkus 6:44PM (5/24/2007)
Yep, it's nothing but a feel-good measure that makes it look like the politicians are doing something.
Price gauging is only a problem in a small minority of cases, and it's already illegal in most places. If anything, Congress should make gas guzzlers illegal. That would actually help decrease demand, which will lower prices.
As for those calling for more refineries, here's a thought: if someone knew they could make money by building one, they would build it. So the fact that they aren't means they know something.... maybe they suspect that by the time they get approval,fight the NIMBYS, build it, etc, (several years) there won't be enough oil around anymore to make it worth it.
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Joseph 12:42PM (5/26/2007)
"the proposal only goes into effect if the president declares an energy emergency, and it's limited to 30 days."
STUPID!!! What a dumb law!! Anyway, can you imagine how many ways there are to get around the term "price gouging"????
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Guenther 7:49AM (5/25/2007)
Tim- thats 50 cents more than here in michigan- where are you paying that much?
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scappy 10:33AM (5/25/2007)
4. Tim was saying gas will peak at a little of $4. I can see this hitting around either the 4th or labor day weekend.
Raising cafe standards is like putting the cart before the horse. You can't force consumers to change their buying habits by adjusting the availabilities of products. You have to make it cost significantly more than a reasonable alternative. People need people movers. CUV are starting to fill that need and they get a little better mileage than an SUV. But it might amount to a few hundred dollars a year difference in fuel costs. Personally for 300 a year I'm going to buy what I want. Multiply that train of thought throughout the market and bingo, we use more oil than "necessary". Sadly there are really only two ways that will gaurantee people buy more efficient vehicles.
1) Raise the gas tax, a lot. Artificially increase the price to the point to where the market begins to shift.
2) Fuel rations. If you want to drive a gas hog, and you don't need to drive far; go for it. If you commute 100 miles a day go buy a roller skate with an engine.
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Rick 1:27PM (5/25/2007)
I love when republicans try to defend gas prices, shows their true colors and ignorances. If oil companies are not to blame, how can they be making RECORD PROFIT? We are not driving anymore these past 8 years then we were during Clinton's administration when the economy was good healthy SUVs became mainstay! Gas has been stable for 20+ years, then suddenly under Bush they rise every year to record CRISIS levels!? First thing Bush does is create problems in oil rich countries driving up market prices due to production fears on wall street so he and his father and buddies can all get rich. You republicans know Bush owned oil stock right? Then sold it before invading Iraq. Wow, he knows he';s about to go to war and he sells his oil stock!? The sheer luck. His dad's oil company connections had ties to Bin Laden' family?
Eron? Cheny? Dealing with energy to make profit? Huh?
haha. wise up. Oh, and don't forget BUSH said he will VETO THIS BILL. Why? Protecting the population form price gouging is a bad thing? What??
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Rick 1:37PM (5/25/2007)
Oil refineries have RAISED THIER PRICES PER GALLON OF GAS EVERY MONTH FOR THE PAST 6 MONTHS!!! haha, yea, it's not the oil companies. They aren't making 75% profit INCREASES. It's demand, k, then I must have missed the dramatic change to our county the past 8 years because for the dramatic coming out of recession 8 years of Clinton into a major budget surplus should have produced similar results. I mean, it's all that money that people used to buy those SUVs to begin with. Yet, somehow gas prices were stable. Then, in 8 years we are seeing crisis level gas prices that we have never seen, and not seen close to those 26 years ago? But, no, it's just demand. Please.
It's being manipulated. Refineries having more maintenance on them than ever before? No Bush and OPEC meetings about getting oil back down to the $20 range!!! Bush wipes out Clinton's mpg car maker bill his first years in office? Bush doesn't want efficient cars. Then creates conflict in oil rich countries? As long as we are in Iraq, yes, we prevent those asses from taking over the oil fields, fine. But we also keep WS nervous enough o keep prices high. If Bush really wanted to end the possibility of terrorists from over taking and controlling the oil, he's simply go out and kill them all. Instead, he has the troops standing around, occupying and getting killed.
I understand some will not agree with my views, I'm atheist, so I used to it. But at least be open to the idea that your beloved republican President may not be on the up and up and there may be slightly more to the 8 year climb of gas prices than simple 'demand'.
Sorry for ranting and taking up value screen space but I had to get it off my chest.
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Mr. Libertarian 2:43PM (5/25/2007)
Americans are economic hypocrites. They claim to embrace free markets yet when they going gets tough they want big government to bail them out. People are driving more and more, driving bigger vehicles and increasing gasoline consumption every year. Supply cannot keep up. Sprawl is encourage in most communities designed to be automobile dependant. The US economy has made itself dependent on non renewable resource. When its time to suffer the consequences, American free market ideals are abandoned and you head for Communist like price controls. Changing behaviour and finding a long term solution is barely on the radar...yet you are so eager to make laws that take away market freedom at the drop of a hat.
What seems to irk the world about Americans so much is how quickly they abandon ideals they say they hold dear to in the face of hard times. Another example is the war on terrorism. The US claims to cherish liberty yet the first thing that happens when that liberty is challenged is to go on and remove it not only from your own citizens (useless measures in the war on terror that just obliterate freedom), but to also wage wars against people in lands far away making their lot worse, not better...and thus breeding more terrorists, not fewer.
Even Republicans who claim to be against big government love to go running to the government like a child runs to their mother whenever they have a problem that is tough to solve. The US auto industry is in crisis....government must bail it out. Gas costs too much, better get government to bail you out. The Islamists are pissed off over 50 years of American meddling in the Middle East....better wage another war to bail us out.
The world looked to America in awe of its ideals of freedom and liberty. Its a shame the current generation seems so willing to abandon those ideas when the going gets tough. That is why the current America is such a disappointment to the world.
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Don 6:33PM (5/25/2007)
Someone wake me up when they actually DO something about this.
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jdonald 2:36PM (5/29/2007)
Random Notes: The inflation adjusted price of gasoline is 2.77/gal current price is 3.34/gal in N. Cal-California reformulated price refinery profits are
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jdonald 2:46PM (5/29/2007)
Random Notes. The inflation adjusted price of gasoline is 2.77/gal since 1970, current price is 3.34/gal in N. Cal - California reformulated price refinery profits are less than 5%. State local and sales taxes are 42%. remove them and gas is 2.35/gal. A barrel of oil at 55 gal/barrel cost 1.09/gallon. UPS Ground shipping from the Martinez Ca refinery to N.cal, zone 8, is $5.88/gallon. Go Figure.
Sorry about the previous incomplete post.
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Christine Bitterman 5:07PM (6/21/2007)
Price Gauging is an understatement, in the last month our price for unleades has gone from 3.65 to 4.07, with another increase of .25 tomorrow, June 22nd. That's just here in Kake Alaska, I can't imagine what the prices are further north. Is anyone ever going to put a cap on the amount we can be charged?
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