Hands off gas prices, oil officials urge GOP

September 9th, 2005, posted by LVDem

Republican state lawmakers seeking to pop the post-Katrina gasoline price balloon were lectured on the limits of their power yesterday.

Representatives of refineries, gasoline wholesalers and retailers told the House Republican Policy Committee the crisis was spawned by short-term interruptions in Gulf Coast oil production beyond state government's ability to control.

"The retail price of gas skyrocketed last week for one reason and one reason only -- and that is that the wholesale ... cost to retailers jumped in an unprecedented way," said Mike Cortez, vice president and general counsel for Sheetz Inc.

He and other industry representatives said the worst probably has passed.

Refineries and pipelines from the gulf are coming back on line, and "as supply continues to increase, historically that has shown that prices will go down," said Rolf Hanson, executive director of the Associated Petroleum Industries of Pennsylvania.

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Re: Hands off gas prices, oil officials urge GOP

On September 9th, 2005 Anonymous said:

I actually saw some of the hearing and I have to say the guy from Sheetz gave decent testimony. When he was questioned about potential policy changes, he just brought out other potential effects of changes that might be produce unintended consequences. Those are fair points to be considered before any legislation is written or passed. For ex, when he was asked about capping wholesale gas prices, he said he’d like that because his operation could be more profitable if the state essentially capped his costs. It was an honest answer. I’m sure the legislators hadn’t thought about that angle. The Sheetz guy also said Sheetz was working closely with the state and AG on price-gouging issues.

There are pros and cons to every issue and that’s what the hearings brought out.

Re: Hands off gas prices, oil officials urge GOP

On September 9th, 2005 LVDem said:

The problem with capping wholesale prices is that it’s going to spur a federal lawsuit against PA saying PA can’t make such laws b/c of the Commerce Clause. In other words, states can’t regulate economic activity that is connected to out of state activity. I know the policy would be best, but big oil has a ton of lawyers just sitting around waiting to do something.

Re: Hands off gas prices, oil officials urge GOP

On September 9th, 2005 Anonymous said:

Nixon put a wage and price freeze on in 1974. It didn’t really work that well.

Re: Hands off gas prices, oil officials urge GOP

On September 10th, 2005 RepMarkBCohen said:

There are going to be many ideas kicked around in order to create gas prices that make it possible for people who were drivers before to keep on driving. One of the options that should be explored is Hawaii’s system of Public Utilities Commission regulation, which has led to Hawaii’s fall in gas prices from number one—way ahead of Pennsylvania—to a far lesser position, way behind Pennsylvania. Hawaii’s system protects service station owners from various arbitrary actions by oil companies, regulates wholesale prices, is based on objective market factors, changes allowable wholesale prices weekly, and allows the governor the power to suspend the system if the governor thinks doing so is advisable. This plan, which took effect September 1, does succeed in balancing various interests.

I do not think it violates the commerce laws, but, if Pennsylvania passes it, doing so will allow federal courts serving Pennsylvania as well as federal courts serving Hawaii to weigh in on the issues involved. If the relevant cirucit courts would reach different conclusions, then the U.S. Supreme Court would have the opportunity to issue a definitive ruling.

what are the pros and cons

On February 10th, 2008 Anonymous said:

what are the pros and cons for capping gas prices? a list would be fine