Parsing the Price at the Pump
Why is it that the gas stations at one corner all have the same price for gas? Or that gas stations at another corner miles away will share another price--perhaps lower than the first corner's but the exactly the same as the adjacent businesses?
Comptroller Peter V.R. Franchot pledged today to gather information from the oil industry to determine how companies are setting rates, as gas prices continue to rise to near-historic levels.
Franchot, at a news conference at a Bethesda gas station and again in Annapolis, questioned why gas prices varied substantially within a few miles. The same brand, he said, could be sold at "wildly fluctuating prices."
Inspectors from his office as well as the state Department of Agriculture will be dispatched to ensure that underground gasoline storage tanks are 60 degrees or cooler. At temperatures greater than 60 degrees, Franchot said, the gasoline expands and could result in customers getting shortchanged at the gas pump.
Franchot also said his office's website, marylandtaxes.gov, will begin listing fuel prices to help motorists find cheaper gas. He also called for renewal of an expired state tax credit for purchasers of hybrid vehicles.
The comptroller's office regulates distribution and sale of motor fuels in Maryland.
Miranda S. Spivack
By Phyllis Jordan |
May 25, 2007; 1:25 PM ET
| Category:
Miranda Spivack
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Posted by: Rufus | May 25, 2007 2:07 PM
What efforts has Peter Franchot made to see that Maryland funds are invested in energy and energy services companies? That way Marylanders could take advantage of high gasoline prices instead of vice versa. With greater investment income, perhaps Peter would be less inclined to support increases in the state sales and income taxes.
Posted by: Robin Ficker | May 25, 2007 5:09 PM
How many press releases and press conferences does Comptroller Franchot put out in the average day or week?
Posted by: PG | May 25, 2007 5:14 PM
Politicians are always especially dangerous when they feel the desperate need to look like they are DOING something.
Their flailing attempts usually either make the problem worse...or engender a different problem elsewhere.
Posted by: gitarre | May 25, 2007 9:45 PM
The "wildly fluctuating prices" that Franchot speaks of are usually no more than a few cents either way. The real question is, why is it that as soon as you cross the 301 bridge into King George Co Virginia, gas prices are usually 25 cents cheaper? That is the problem Franchot should be tackling. Instead, he chooses to TALK about the issue with no plans to FIX anything. Wow, a website that shows who has the cheaper gas prices-aren't there already several of those? So I'll drive an extra 20 miles to save 8 cents-brilliant idea, Franchot. You Democrats have been duped again. I just hope you start paying attention to this.
Posted by: BG from PG | May 27, 2007 10:45 AM
Companies that were making 3-12 cents per gallon of gas just a few months ago are now making 30-40 cents per gallon. It's a shame when you know the wholesale price and what retailers are charging for gas. It's certainly not the fault of all retailers but some of them are robbing the public.
There should be more refineries. There should be disclosure about how much retailers pay for gas. There's no need for 30-cent price differences within a block or two. Drastic price differences tell me that there's something not right with competition. Benefits of supply and demand only work with free competition, which is something we don't have in this industry (just like with the BGE electricity situation).
Posted by: Kelvin | May 27, 2007 10:14 PM
Will someone tap Mr. Franchot on the shoulder and remind him that UNDER STATE LAW PASSED IN 2001 AND ENFORCED BY HIS OFFICE, gas stations in proximity with each other must have similar prices.
Posted by: Thomas Firey | May 30, 2007 12:07 PM
Raise the gas and energy taxes nation-wide.
Revenues earmarked partly for alternative fuels and technologies, partly to subsidize mass transit, partly to maintain the infra structure, and partly for whatever (maybe deficit reduction?).
Until prices are much higher, with the government benefiting and not the oil companies and OPEC, not much will change.
Posted by: me | May 31, 2007 9:47 AM
The comments to this entry are closed.
Build more refineries, drop nonsensical state-level additives, and drill offshore and in ANWAR.
Problem solved.