Before Katrina hit the Gulf Coast, I wrote about Hawaii imposing price controls on gasoline at the wholesale level and, later, about California and other states considering following suit.
I wondered how long it would take for the economic chickens to come home to roost. From this article it appears that the answer is, not long at all.
Hawaii again has the most expensive gasoline in the nation, with a statewide average price of $3.45 7/10 that far exceeds that highest levels reached by any Mainland state in the days after Hurricane Katrina.
AAA Hawaii, which does daily surveys of self-serve gasoline prices in Honolulu, Hilo and Wailuku, posted increases of more than 15 cents a gallon Wednesday morning:
Honolulu: $3.38 2/10.
Hilo: $3.49 2/10.
Wailuku: $3.65 9/10.
Not a big surprise to those of us who understand the laws of supply and demand and the role prices play in the economy. Apparently, however, the political class has yet to learn this lesson:
Rep. Marcus Oshiro, who has defended the gas cap in a series of television appearances and press releases, put out another one overnight saying next week’s caps should be 49 cents lower, enough to bring Honolulu regular below $3 a gallon again. “We continue to urge the public to give this law a chance to work,” he said.
Okay, so they lower the price caps below what the market will tolerate. Any guesses on how long the gas lines will be ?
H/T: Hit & Run
Linked with today’s Beltway Traffic Jam and Mudville Gazette’s Open Post
