… you haven’t yet heard the news about at least 2,500 complaints to state government about gas prices.?
As Roy Cordato says in the latest John Locke Foundation press release:
“Gas station owners are afraid to raise prices
in light of threats of prosecution from state government,” said Dr. Roy
Cordato, JLF Vice President for Research and Resident Scholar. “Because
those owners refuse to raise prices, consumers continue to flock to the
pumps, and the stations run the risk of running out of gas.”The current problem with shortages and gas lines is far different from
the situation that followed Hurricane Katrina in 2005, Cordato said.
“North Carolina had no problems with shortages or long lines at the gas
pumps after Katrina because the price system was able to work,” Cordato
said. “The only difference between 2005 and 2008 is the new version of
the state’s price-gouging law.”“It’s against the law charge ‘too much’ for gas — whatever the
government decides ‘too much’ means — but it’s not against the law to
run out of gas and shut down your pumps,” Cordato added. “Faced with
that choice, why would a gas station owner take the risk of running
afoul of this arbitrary law?”
Roy will be discussing this issue this on the radio this afternoon with Matt Mittan (3:30 p.m.), Bill LuMaye (the 4 o’clock hour), and Allan Handelman (6 p.m.).
