The Twin Myths of Price Gouging and Bigfoot

In a cleverly written Op-Ed in the April 25th Richmond Times-Dispatch, A. Barton Hinkle compares oil price-gouging investigations to looking for Bigfoot. His point: Despite all of the attempts to find evidence of price gouging and Bigfoot, neither has been confirmed to exist. 

About price gouging, Hinkle says, "The Federal Trade Commission has looked into the matter again and again -- and never has found anything more than the isolated instance of a service station violating a state statute aimed at unicorns and the Easter Bun...whoops, sorry - 'price-gouging.'"

Whenever fuel prices go up, some folks assume that something nefarious and untoward is occurring. In actuality, it is simply the market at work, elegantly and efficiently responding to the law of supply and demand. In a 2007 report, the FTC found, "over the past 20 years, changes in the price of crude oil have led to 85 percent of the changes in the retail price of gasoline in the U.S., while other important factors have included increasing demand, supply restrictions, and federal, state and local regulations such as 'clean fuel' requirements and taxes."

Gasoline and diesel prices are high, and it's not fun to fill-up these days. But pointing fingers and calling for investigations will not ease the pain. The best approach is to conserve and use energy wisely while increasing U.S. energy supplies of all types.