The SF Examiner had an editorial against the new proposed bill AB 457 which would cap gas pump prices through Sacaramento legislation by the politicians. I wrote an anti-gas cap LTE and the Examiner published but did drop the Libertarian affiliation.
Letters: June 14th, 2006
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Jun 14, 2006 6:00 AM (54 mins ago)
SAN FRANCISCO -
Capping gas prices isn’t the answer
A new bill in Sacramento is being promoted to provide temporary price caps in times of “abnormal market disruption” on “artificially inflated” gas prices (“State officials urging price caps on gasoline,” June 10). Price increases greater than 10 percent are barred after a state of emergency is declared. The new law would extend this from retailers to include refineries and suppliers.
But the bill doesn’t cap the overseas cost of oil. It doesn’t make it easier for new refineries to be built, as no new refineries have been built in the last 25 years. It ignores free market competition under the politicians’ guise of doing something to help consumers.
Free market competition decides prices. If prices are too high, consumers buy less. Legislating market prices helps no one. Repeal gas taxes to reduce pump prices.