House Speaker Pelosi Seeks Price Controls and a Ban on ‘Excessive’ Gasoline Prices – Mish Talk
Gas Price Chart courtesy of the AAA
Ban on ‘Excessive’ Gasoline Prices Heads for House Vote
As gas prices hit a fresh high according to the AAA, Bloomberg reports Ban on ‘Excessive’ Gasoline Prices Is Heading for House Vote
The US president would have the authority to declare an emergency that would make the sale of gasoline at “excessive” prices illegal under legislation House Democrats plan to bring to the floor next week.
The effort, announced Thursday by House Speaker Nancy Pelosi, comes as Democrats seek to blame record high gasoline prices on the oil industry amid fears that angry voters could punish Democrats in the midterm elections in November.
“Price gouging needs to be stopped,” Pelosi said at a press conference Thursday. “This is a major exploitation of the consumer.”
Consumer Fuel Price Gouging Prevention Act
The name of the proposed bill is Consumer Fuel Price Gouging Prevention Act. CFPGPA?
The bill would give the federal Trade Commission ability to penalize price gougers, but would prioritize larger companies while protecting independent gas stations.
Facts of the Matter
- Refiners own less than 5% of the 145,000 retail stations. When a station bears a particular refiner’s brand, it does not mean that the refiner owns or operates the station.
- The vast majority of branded stations are owned and operated by independent retailers licensed to represent that brand.
- According to the National Association of Convenience Stores (NACS), more than 60% of the retail stations in the US are owned by an individual or family that owns a single store. Through various branding agreements, approximately 36% of the retail stations in the US sell fuel under API members’ brands.
The above from the American Petroleum Institute FAQs.
What Would Happen If This Passed?
- The refiners will not sell gas at a loss.
- Supply would shrink
- Independents, not covered by the bill would raise prices (assuming they could even get the gas)
More Questions
Q: Are the Democrats really this stupid?
A: Obviously
Scroll to Continue
Senate Majority Leader Chuck Schumer has embraced the proposal as well.
Can it get any Stupider?
Of course.
Last week Italy’s Prime Minister Mario Draghi floated creation of an Oil Consumer ‘Cartel’ after talks with president Biden.
Under the plan, buyers of oil would demand lower prices and more production.
“The idea is to create a cartel of buyers and to convince, the favorite way, to increase production,” Draghi told reporters in Washington.
I am sure things can and will get dumber because they always do. But this pair of ideas is my Hoot of the Day.
Checking in on Diesel
Food, Rent, and Energy Prices are Totally Outside the Fed’s Control
Meanwhile, please note Food, Rent, and Energy Prices are Totally Outside the Fed’s Control
So hey, let’s stop the price gougers and demand lower diesel prices. All we need is a truckers cartel to demand lower prices coupled with gouging controls.
This post originated at MishTalk.Com.
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