Now that we are all paying for gas not with money (who can afford it?) but priceless, non-inflationary currencies like our daughter’s virginities and healthy human livers, you might start thinking that the government should get involved. “They should regulate, control and cap gasoline prices for our nation’s motorists!” you might cry.
We hate to be libertarians here, but think about it for a second: when has the government getting involved with practically anything worked out? And to prove our point, let’s take a look at Hawaii’s failed eight month attempt to cap gasoline prices. Hawaii pays more per gallon than any state in the union. So on September 1st, Hawaii imposed weekly limits on wholesale gas prices based on the average of prices in Los Angeles, New York and the Gulf Coast. Allowances were made for shipping costs. There was no cap on gas station mark-up.
At the end of the day, how much did Hawaiians save? Negative 53.3 million dollars. The price cap just encouraged all the gas companies to charge the maximum amount. A huge political boner gouged through the eye socket of the Hawaiian consumer.
Hawaiian Gas Cap Running on Fumes [Washington Post]