EDITOR'S NOTE: When listening to Nancy Pelosi’s proposed ban on ‘excessive’ gasoline prices, it really is hard to tell whether she and her Democrat cohorts are operating out of sheer economic stupidity, political misdirection, or mere flagrant negligence of research. It’s likely two out of the three, but regardless, it’s yet another instance of rhetoric over reason. Hopefully, none of our readers agree that charging a price over breakeven constitutes excessive pricing. Fact is, energy input costs have gone up, thanks to Biden’s fiscal irresponsibility and the Fed’s inane miscalculations. Somebody has to bear the cost of the premium hike; the gasoline stations or the consumers. Another thing: “big energy” owns only 5% of the gas stations. So, in Pelosi’s rhetoric, one that supports small stations while condemning big oil, the outcome would hurt small businesses (not the “evil” corporations). There’s a whole chain reaction to this proposed bill should it pass, and its effects on the broader economy are potentially disastrous.
Keep telling yourself no matter how stupid things get, there's always room for things to get worse.
Source: MishTalk via 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)
Q: Are the Democrats really this stupid?
Can it get any Stupider?
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
Major truckstop chains Loves and Pilot warning about imminent diesel shortages in the eastern half of the US
— Craig Fuller 🛩🚛🇺🇦 (@FreightAlley) May 11, 2022
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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Originally published on MishTalk.