Re: Regulating Gas

Posted by Daren Bakst at 3:05 PM

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. 

2) 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."

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