Price controls have a decent shot of working this time, so we’re told, because the central planners have based the caps on an index of five-day averages of spot rates in three mainland markets (L.A., N.Y., and Gulf Coast).
That should do the trick. These guys are so clever. I wonder why the market never thought of this? (Wink, wink).
{ 8 comments }
Makes perfect sense to me! After all, the Gulf Coast is where the refinaries are, NY is reasonably close to a major pipeline terminus from the refinaries to Dullas, LA is accessable via truck or train from the refinaries, and Hawaii is ????
Apparently people still fail Econ 101, and they run the PUC in Hawaii.
It actually is too bad that the commission set the cap above the price of today. Now we will have to actually wait to see it fail spectacularly.
This is priceless. This law completely ignores how a big portion of the price of oil is set by the winds of speculation… often called “The Market”, perhaps they might have heard of it. Now, with crude prices rising ever upward & China’s reserves forecasted to only carry it another 15 years, perceived crude supply shortages and trader worries will ramp ever skyward. Way to go Mr. Legislator, way to take Hawaii out of the game! Sounds a ot like the brain trust in California that instituted a marine bunker tax without knowing anything about the world market that ended up killing a lot livelihoods.
just glad i don,t live over in Hawaii. Lots of luck, gaagggggggggg. yea right. as the movie says “bats”
“Price caps are a great idea, because they are providing a solution to an uncompetitive market,” Tyson Slocum, analyst and the consumer advocacy group Public Citizen, told CNBC. “Right now gasoline markets, particularly in Hawaii are very dysfunctional. You have a direct correlation between the record profits oil companies are making and the record prices consumers are paying.”
That noise you just heard? The sound of my jaw hitting the floor.
Is there anyway to make money off Hawaii’s self-immolation, perhaps by purchasing futures or what not or energy stocks in Hawaii?
I just found a website that is mapping the gas prices in Hawaii. I was able to save a few bucks on my last fill up. http://www.mapgasprices.com
Comments on this entry are closed.