Bouncy bouncy

That’s the sound the price of gasoline makes. We have a price cap on gas here that’s set according to a survey of several gasoline markets on the mainland. Supposedly, this is in place to protect us from price gouging since there are only a couple of refineries Hawaii. These refineries resell gasoline to all the other gasoline franchises around here, which in theory provides a monopoly on gas on the supply side. The second week of the program, the whole deal backfired on us. When Katrina hit the gulf, the price of gas in Hawaii shot up like a rocket since the gulf area prices were included in the calculations for the price cap. The price of gas went up 70 cents in 2 weeks, then dropped 50 cents in a week. WTF? Is this what we’re in for? Sure, prices might have gone up, but is that dramatic price bounce really what the legislature had in mind? Supposedly the price of gasoline is going to level out after this week, but damn dudes. Virtually every economics class I’ve ever taken has shown that the free market generally works out to be better than a price cap. We’re not supposed to penny-pinch and worry about the price of gas with the cap in place, but with morning radio reporting gasoline forecasts along with the surf report, everyone I know is playing “gas strategy.” That’s the downside of giving us a number, I suppose. I actually waited until today to fill my car up because gas cost too much last week. I think I saved a few bucks, but somehow I still feel really manipulated.

BTW, J.D. Fortune beat Marty to become the lead singer of INXS. WTF?

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