1) There is no competitive market that has price caps–anywhere–not
on the state or federal lavel–if I’m wrong, please tell me. 

Hawaii tried to cap gas prices.  It should be noted that Hawaii is
unique and tends to experience higher gas prices than any other state
(at least they have a bad excuse).

Here’s what happened to Hawaii’s public utility-regulated petroleum idea, as described in this article.

“The island state whose drivers pay the highest pump prices in the
United States has given up on price caps after an eight-month,
first-in-the-nation experiment. Some complained that the restrictions
actually led to higher prices, because oil companies knew they could
charge up to the maximum allowed.”

– “An analysis by the state
Department of Business, Economic Development and Tourism estimated that
island motorists paid $54.9 million more than they otherwise would have
in the first five months under the cap.”