Monday, August 18, 2003

In praise of price gauging.

Phoenix is in the middle of a gas crisis. Reminiscent of the 70's embargo, there are lines 20-30 cars deep at gases that have gas. Most stations don't even have gas.

The problem is a pipeline breaking down north of Tucson. The pipeline has been repaired, but we are waiting on the Feds to approve testing on the repairs. So currently the gas is being trucked in. Apparently there aren't enough trucks to fill everyone up.

Anyway, the prices have gone up to almost 2.15, even 2.50, a gallon. I am not psyched about paying such high prices, but the higher they go, the quicker the crisis will be over.

Of course the state officials have all said they will investigate and prosecute and price gauging. This is silly. Let the stations gauge and charge as much as they get. This will have the effect of bringing more gas to the market (suppliers in search of profit). And it will also curb peoples driving resulting in more gas available.

Bring on the gauging and end the gas crisis.

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